ACT ON SPECIAL CASES CONCERNING UNOCCUPIED HOUSE OR SMALL-SCALE HOUSING IMPROVEMENT
Act No. 14569, Feb. 8, 2017
Amended by Act No. 14719, Mar. 21, 2017
Act No. 15356, Jan. 16, 2018
Act No. 15456, Mar. 13, 2018
Act No. 15489, Mar. 20, 2018
Act No. 16387, Apr. 23, 2019
Act No. 16415, Apr. 30, 2019
Act No. 16496, Aug. 20, 2019
Act No. 17171, Mar. 31, 2020
Act No. 17453, jun. 9, 2020
Act No. 17484, Aug. 18, 2020
Act No. 17689, Dec. 22, 2020
Act No. 17893, Jan. 12, 2021
Act No. 18049, Apr. 13, 2021
Act No. 18314, Jul. 20, 2021
Act No. 18510, Oct. 19, 2021
Act No. 19385, Apr. 18, 2023
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to raising the quality of residential life by prescribing matters and special cases necessary to efficiently improve neglected unoccupied houses and to facilitate improving small-scale housing.
| (1) | The terms used in this Act are defined as follows: <Amended on Apr. 23, 2019; Jul. 20, 2021; Oct. 19, 2021> |
| 1. | The term "unoccupied house" means a house not occupied or used for at least one year as of the date the Special Self-Governing City Mayor, or the Special Self-Governing Province Governor, or the head of a Si/Gun/autonomous Gu (hereinafter referred to as the "head of a Si/Gun") has verified that the house was occupied or used: Provided, That houses prescribed by Presidential Decree, including unsold houses, shall be excluded herefrom; |
| 2. | The term "unoccupied house improvement project" means a project for ameliorating or demolishing unoccupied houses or for efficiently managing or using unoccupied houses; |
| 3. | The term "small-scale housing improvement project" means any of the following projects implemented in regions or city blocks that meet the requirements prescribed by Presidential Decree, such as where worn-out and substandard structures are clustered, in accordance with the procedures prescribed in this Act: |
| (a) | An autonomous housing improvement project: A project for autonomously ameliorating or constructing a detached house, multi-household house, or row house; |
| (b) | A housing improvement project in a city block: A project for improving residential environments in a city block on a small scale, while maintaining existing streets; |
| (c) | A small-scale reconstruction project: A project for reconstructing multi-family housing on a small scale in an area where fundamental infrastructure is in good condition. In such cases, a small-scale reconstruction project meeting all of the following requirements that is implemented to facilitate the supply of housing units in urban areas is referred to as "public involvement project to facilitate small-scale reconstruction" (hereinafter referred to as "public involvement small-scale reconstruction project"): |
| (i) | The Korea Land and Housing Corporation or any similar entity prescribed in Article 10 (1) 1 shall be a co-implementer under Article 17 (3), a public implementer under Article 18 (1), or a developer under Article 56 (hereinafter referred to as "public implementer, etc."); |
| (ii) | The ratio of housing units constructed and supplied to the previous number of households shall exceed the ratio prescribed by Presidential Decree: Provided, That this shall not apply where any unavoidable reason is deemed to exist that makes it impossible to construct housing units in a ratio equal to or higher than that prescribed by Presidential Decree in consideration of urban or Gun master plans prescribed in Article 18 of the National Land Planning and Utilization Act, the current status of land utilization including fundamental infrastructure, or any other matter, following integrated deliberation under Article 27; |
| (d) | A small-scale redevelopment project: A project for improving residential or urban environments on a small scale in a station's sphere of influence or a quasi-industrial zone; |
| 4. | The term "project zone" means a zone where an unoccupied house improvement project or a small-scale housing improvement project is implemented; |
| 5. | The term "project implementer" means a person who implements an unoccupied house improvement project or a small-scale housing improvement project; |
| 6. | The term "owner of land or other property" means any of the following persons: Provided, That where a trust business entity, defined in Article 8 (7) of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "trust business entity"), is designated as a project implementer, a trustor shall be deemed an owner of land or other property with respect to land and a building that the owner of land or other property places in trust with the trust business entity for the purpose of the relevant small-scale housing improvement project: |
| (a) | In cases of an autonomous housing improvement project, a housing improvement project in a city block, or a small-scale redevelopment project, the owner of land or a building located in the project zone, and the person with superficies of the relevant land; |
| (b) | In cases of a small-scale reconstruction project, the owner of a building located in the project area and the appurtenant land; |
| 7. | The term "residents' consensus body" means a consultative body organized by the owners of land or other property pursuant to Article 22 to implement a small-scale housing improvement project; |
| 8. | The term "unoccupied house area" means an area designated and publicly notified pursuant to Article 4 (5) to manage the area in which unoccupied houses are clustered; |
| 9. | The term "small-scale housing improvement management area" (hereinafter referred to as "management area") means an area for which a small-scale housing improvement management plan is approved and publicly notified pursuant to Article 43-2, to implement small-scale housing improvement projects systematically and effectively through the expansion of fundamental infrastructure and joint-use facilities in an area where it is impracticable to conduct development over a wide area as detached houses and multi-family housing that constitute worn-out and substandard structures, and newly constructed buildings are mixed. |
| (2) | Except as provided in this Act, the definitions of the terms in the Act on the Improvement of Urban Areas and Residential Environments shall apply. |
| Article 3 (Relationship to Other Statutes) |
| (1) | This Act shall apply in preference to other Acts regarding unoccupied house improvement projects and small-scale housing improvement projects. |
| (2) | This Act shall not apply to any unoccupied house improvement projects and autonomous housing improvement projects implemented in rural communities and quasi rural communities defined in subparagraphs 1 and 2 of Article 2 of the Agricultural and Fishing Villages Improvement Act: Provided, That the foregoing shall not apply to an autonomous housing improvement project implemented in an urban regeneration revitalization area defined in Article 2 (1) 5 of the Special Act on Promotion of and Support for Urban Regeneration. <Amended on Apr. 23, 2019> |
CHAPTER II UNOCCUPIED HOUSE IMPROVEMENT PROJECTS
SECTION 1 Formulation of Unoccupied House Improvement Projects
| Article 4 (Formulation of Unoccupied House Improvement Projects) |
| (1) | To efficiently improve or use unoccupied houses, the head of a Si/Gun shall formulate and implement a plan for improving unoccupied houses, which includes the following matters (hereinafter referred to as "unoccupied house improvement plan") every five years: Provided, That where the Minister of Land, Infrastructure and Transport requests or the head of a Si/Gun deems necessary, the head of a Si/Gun may re-examine the appropriateness of the relevant unoccupied house development plan every year after formulating the plan. <Amended on Apr. 23, 2019; Apr. 13, 2021> |
| 1. | Basic direction for improving unoccupied houses; |
| 2. | A plan for promoting the unoccupied house improvement project and methods for implementation; |
| 3. | A plan for raising funds necessary for the unoccupied house improvement project; |
| 4. | A plan for raising funds necessary for the unoccupied house improvement project; |
| 5. | Other matters prescribed by Presidential Decree as necessary for improving unoccupied houses. |
| (2) | To formulate an unoccupied house improvement plan pursuant to paragraph (1), the head of a Si/Gun shall gather consensus from residents by making the plan available for inspection for at least 14 days; and shall refer it to the urban planning committee established in the competent Special Self-Governing City, Special Self-Governing Province, or Si/Gun/Gu (Gu means an autonomous Gu; hereinafter the same shall apply) pursuant to Article 113 (1) or (2) of the National Land Planning and Utilization Act (hereinafter referred to as "local urban planning committee") for deliberation. |
| (3) | Paragraph (2) shall apply mutatis mutandis where unoccupied house improvement plans are amended: Provided, That this shall not apply to any amendment to minor matters prescribed by Presidential Decree. |
| (4) | If the head of a Si/Gun formulates or modifies an unoccupied house improvement plan, he or she shall without delay publicly notify it in the public gazette of the relevant local government; and the head of a Si/Gun/autonomous Gu shall report it to the Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor; and the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") shall report it to the Minister of Land, Infrastructure and Transport. In such cases, the Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor may request the revision or supplementation of the unoccupied house improvement plan of the competent local government, if deemed necessary. <Amended on Feb. 3, 2022> |
| (5) | Where the head of a Si/Gun formulates or alters an unoccupied house improvement plan, he or she may designate an area meeting all of the following requirements as an unoccupied house area: <Newly Inserted on Apr. 23, 2019> |
| 1. | An area in which unoccupied houses are increasing or the ratio of unoccupied houses is high; |
| 2. | An area where dilapidated and substandard structures are increasing or the residential environment is substandard due to insufficient fundamental infrastructure; |
| 3. | An area for which no improvement project is being promoted under other statutes or regulations. |
| (6) | Detailed requirements for designating unoccupied house areas under paragraph (5) shall be prescribed by Presidential Decree. <Newly Inserted on Apr. 23, 2019> |
| (7) | The Commissioner of the competent City/Do Police Agency and the head of the fire headquarters of the relevant City/Do shall endeavor to prevent accidents, crimes, etc. in unoccupied house areas designated under paragraph (5). <Newly Inserted on Apr. 23, 2019; Dec. 22, 2020> |
| (8) | Guidelines, procedures and methods for formulating unoccupied house improvement plans and other necessary matters shall be prescribed by Presidential Decree. <Amended on Apr. 23, 2019> |
| Article 5 (Fact-Finding Surveys of Unoccupied Houses) |
| (1) | The head of a Si/Gun shall survey (hereinafter referred to as "fact-finding survey") unoccupied houses or houses presumed unoccupied (hereinafter referred to as "unoccupied houses, etc.") every five years, regarding the following: Provided, That where the Minister of Land, Infrastructure and Transport requests or the head of a Si/Gun deems necessary, the head of a Si/Gun may conduct a fact-finding survey at any time:<Amended on Apr. 13, 2021> |
| 1. | Verifying whether the relevant houses are unoccupied; |
| 2. | How the unoccupied houses are maintained and how long they have been neglected; |
| 3. | Status of rights and interests, such as the ownership of the unoccupied houses; |
| 4. | Status of facilities, artificial structures, etc. installed in the unoccupied houses or on the sites thereof; |
| 5. | Other matters prescribed by Presidential Decree, such as reasons why houses are unoccupied. |
| (2) | The head of a Si/Gun may designate any specialized institution prescribed by Presidential Decree to conduct a fact-finding survey on his or her behalf. |
| (3) | The head of a Si/Gun or the head of any specialized institution designated under paragraph (2) may request necessary materials from the owners of unoccupied houses and interested parties to conduct a fact-finding survey. |
| (4) | Where the head of a Si/Gun conducts a fact-finding survey pursuant to paragraph (1), he or she shall calculate the grades of unoccupied houses based on the criteria prescribed by Presidential Decree, such as the condition and risks of unoccupied houses. <Newly Inserted on Apr. 13, 2021> |
| (5) | Methods and procedures for conducting fact-finding surveys and other necessary matters shall be prescribed by Presidential Decree. <Amended on Apr. 13, 2021> |
| Article 6 (Entry into Unoccupied Houses) |
| (1) | The head of a Si/Gun or the head of any specialized institution designated under Article 5 (2) may enter any unoccupied house, etc. and the site thereof, if necessary for conducting a fact-finding survey. |
| (2) | To enter an unoccupied house, etc. and the site thereof pursuant to paragraph (1), the head of a Si/Gun or the head of any specialized institution designated under Article 5 (2) shall give notice of the date, time and location to the owner, occupant or custodian (hereinafter referred to as "owner, etc.) of the unoccupied house, etc. to be entered, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, seven days beforehand: Provided, That where it is impossible to give notice of the date, time and location due to absence or unknown whereabouts of the owner, etc., such information shall be publicly announced in the public gazette and on the website of the relevant local government. <Amended on Apr. 13, 2021> |
| (3) | A person who enters an unoccupied house, etc. and the site thereof pursuant to paragraph (1) shall carry an identification card indicating his or her authority and produce it to relevant persons as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Aug. 20, 2019> |
| Article 7 (Compensation for Loss Incurred by Entering Unoccupied Houses) |
| (1) | If entering an unoccupied house, etc. or the site thereof pursuant to Article 6 (1) inflicts any loss on a person, the head of the relevant Si/Gun shall compensate the person for the loss. |
| (2) | The head of a Si/Gun shall pay compensation in consultation with a person who has suffered a loss pursuant to paragraph (1). |
| (3) | Where no agreement is reached through consultation under paragraph (2) or it is impossible to hold consultation, the head of a Si/Gun or a person who has suffered a loss pursuant to paragraph (1) may apply for adjudication with the competent Land Tribunal established under Article 49 of the Act on Acquisition of and Compensation for Land for Public Works Projects. <Amended on Aug. 20, 2019> |
| (4) | Articles 83 through 87 of the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply mutatis mutandis to adjudication by the competent Land Tribunal under paragraph (3). |
| Article 8 (Use of and Request for Data or Information on Unoccupied Houses) |
| (1) | If deemed necessary for a fact-finding survey, the head of a Si/Gun or the head of a specialized institution designated under Article 5 (2) may collect and use the following data or information: <Amended on Apr. 18, 2023> |
| 1. | Electronic information on resident registration (including personally identifiable information, such as resident registration numbers and alien registration numbers); |
| 2. | Details of national taxes, local taxes, and water and electricity charges imposed (notified); |
| 3. | The land cadastre and the building register; |
| 4. | Other data and information prescribed by Presidential Decree, such as the certificate of registered information. |
| (2) | If necessary to achieve the purpose of paragraph (1), the head of a Si/Gun may request data or information from the heads of relevant administrative agencies or heads of relevant public institutions. In such cases, the heads of agencies or institutions in receipt of such request shall comply therewith, unless there is a compelling reason not to do so. |
| (3) | Matters concerning the protection of personal information among the data or information referred to in paragraphs (1) and (2) shall be governed by the Personal Information Protection Act. <Amended on Apr. 18, 2023> |
| (4) | No person who performs or has performed the duties prescribed in paragraph (1) or (2) shall use any data or information acquired in the course of performing such duties for other than the purpose prescribed in this Act or provide or divulge such data or information to any other person or institution. |
| (5) | The State or a local government shall not charge any fee for the documents issued pursuant to paragraphs (1) and (2). <Newly Inserted on Apr. 18, 2023> |
SECTION 2 Methods for Implementing Unoccupied House Improvement Projects
| Article 9 (Methods for Implementing Unoccupied House Improvement Projects) |
An unoccupied house improvement project shall be implemented as follows:
| 1. | Partitioning the interior space of an unoccupied house, pasting wallpaper, or installing ceiling materials, flooring materials, etc.; |
| 2. | Renovating, expanding, substantially repairing, or changing the use of, an unoccupied house without demolishing it; |
| 3. | Demolishing an unoccupied house; |
| 4. | Constructing a building, such as a house, or constructing fundamental infrastructure, joint-use facilities or similar facilities after demolishing an unoccupied house. |
| Article 10 (Implementers of Unoccupied House Improvement Projects) |
| (1) | An unoccupied house improvement project may be implemented by the head of a Si/Gun or the owner of an unoccupied house, directly or jointly with any of the following: <Amended on Apr. 30, 2019> |
| 1. | The Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act, or a local government-invested public corporation established under the Local Public Enterprises Act to implement housing projects (hereinafter referred to as the "Korea Land and Housing Corporation or any similar entity"); |
| 2. | A constructor registered under Article 9 of the Framework Act on the Construction Industry (hereinafter referred to as "constructor"); |
| 3. | A registered project operator who is deemed a contractor under Article 7 (1) of the Housing Act (hereinafter referred to as "registered project operator"); |
| 4. | A real estate investment trust defined in subparagraph 1 of Article 2 of the Real Estate Investment Company Act (hereinafter referred to as “real estate investment trust”); |
| 5. | A social enterprise defined in subparagraph 1 of Article 2 of the Social Enterprise Promotion Act; a cooperative whose establishment is reported pursuant to Article 15 of the Framework Act on Cooperatives; a non-profit-making juristic person established under Article 32 of the Civil Act; or a public-service corporation whose incorporation is permitted pursuant to Article 4 of the Act on the Establishment and Operation of Public Interest Corporations. |
| (2) | Notwithstanding paragraph (1), if requested by the owner of an unoccupied house or if necessary to efficiently implement an unoccupied house improvement project to be implemented as prescribed in subparagraph 1, 2 or 4 of Article 9, the head of a Si/Gun may designate a person referred to in any subparagraph of paragraph (1) as the project implementer to implement the unoccupied house improvement project. |
| (3) | In implementing an unoccupied house improvement project (excluding ex officio demolition of an unoccupied house pursuant to Article 11 (2)), the head of a Si/Gun shall obtain consent from the owner of the unoccupied house as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That if the whereabouts of the owner of the unoccupied house is unknown, the details of the project implementation plan formulated under Article 13 shall be publicly announced in the public gazette and on the website of the relevant local government, and consent shall be deemed obtained from the owner of the unoccupied house unless such owner submits his or her opinion within 30 days from the date of public announcement. |
| Article 11 (Demolition of Unoccupied Houses) |
| (1) | If an unoccupied house falls under any the following cases, the head of a Si/Gun may order the owner of the relevant unoccupied house to take necessary measures, such as safety measures or demolition (hereinafter referred to as "demolition, etc.), as specified in the unoccupied house improvement plan: Provided, That where no unoccupied house improvement plan has been formulated, the head of a Si/Gun may order the owner of the relevant unoccupied house to take necessary measures, such as demolition, etc., after deliberation by the local building committee established under Article 4 of the Building Act (hereinafter referred to as "local building committee”). In such cases, the owner of the unoccupied house shall take the measures within 60 days, unless there is a compelling reason not to do so: <Amended on Apr. 13, 2021> |
| 1. | Where an accident, such as collapse or fire, or a crime is highly likely to occur; |
| 2. | Where any harm is likely to occur with regard to hygiene; |
| 3. | Where the landscape is significantly damaged as the unoccupied house is poorly managed; |
| 4. | Where it is inappropriate to leave the unoccupied house unattended to conserve the living environment in its surroundings. |
| (2) | Where the head of a Si/Gun orders the owner of an unoccupied house to take necessary measures under paragraph (1), such as demolition of the unoccupied house, but the owner fails to comply with such order without reasonable grounds, he or she may ex officio demolish the unoccupied house or take other necessary measures, as prescribed by Presidential Decree. <Amended on Apr. 13, 2021> |
| (3) | If the whereabouts of the owner of an unoccupied house to be demolished under paragraph (2) is unknown, the head of the relevant Si/Gun shall publicly announce, at least once, in a daily newspaper and its website, a demotion order of the unoccupied house and that the unoccupied house will be ex officio demolished, if the order is disregarded, and may ex officio demolish it, if its owner fails to demolish it within 60 days from the date of public announcement in the daily newspaper. |
| (4) | When demolishing an unoccupied house in accordance with paragraph (2) or (3), the head of a Si/Gun shall pay the owner of the unoccupied house a due compensation prescribed by Presidential Decree. In such cases, the head of the relevant Si/Gun may pay it after deducting the cost incurred for demolition, from the compensation. |
| (5) | In any of the following cases, the head of a Si/Gun shall deposit the amount of compensation: |
| 1. | Where the owner of an unoccupied house refuses compensation; |
| 2. | Where it is impossible to pay compensation due to the unknown whereabouts of the owner of an unoccupied house; |
| 3. | Where paying compensation is prohibited by seizure or provisional seizure. |
| (6) | Upon demolishing an unoccupied house in accordance with paragraph (2) or (3), the head of a Si/Gun shall reflect such fact in the Building Register without delay; notify the competent registry office that the unoccupied house has been demolished under this Act; and shall entrust the competent registry office with canceling the registration of that house. |
[Title Amended on Apr. 13, 2021]
| Article 11-2 (Purchase of Unoccupied Houses) |
| (1) | The Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity may purchase unoccupied houses, according to an unoccupied house improvement plan and utilize them for fundamental infrastructure, joint-use facilities, rental housing units, etc. In such cases, unoccupied houses in an unoccupied house area may be preferentially purchased. |
| (2) | The owner of an unoccupied house may request the competent Mayor/Do Governor, the head of the relevant Si/Gun, or the Korea Land and Housing Corporation or any similar entity to purchase his or her unoccupied house. In such cases, the Mayor/Do Governor, the head of the Si/Gun, or the Korea Land and Housing Corporation or any similar entity shall notify the owner of the unoccupied house of whether it is purchased within 30 days from the date of receiving such request. |
| (3) | Matters regarding methods, procedures, etc. for purchasing unoccupied houses shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 23, 2019]
| Article 11-3 (Reporting on Unoccupied Houses) |
| (1) | Where any person recognizes that an unoccupied house falls under at least one of subparagraphs 1 through 4 of Article 11, he or she may file a report thereon with the head of the Si/Gun having jurisdiction over the area in which the relevant unoccupied house is located. In such cases, the Public Interest Whistleblower Protection Act shall apply to procedures, methods, etc. for filing a report. |
| (2) | Upon receipt of a report on an unoccupied house filed under paragraph (1), the head of a Si/Gun shall conduct an on-site inspection, as prescribed by Presidential Decree. |
| (3) | The head of a Si/Gun shall instruct the owners, etc. of unoccupied houses referred to in paragraphs (1) and (2) to take measures necessary to conserve the living environment in their surroundings, such as removal of risks of the relevant unoccupied house, maintenance or logging, as prescribed by Presidential Decree, and methods of administrative guidance and other necessary matters shall be governed by Articles 48 through 51 of the Administrative Procedures Act. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 11-4 (Expropriation or Use of Unoccupied Houses) |
| (1) | The head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity that implements the following unoccupied house improvement projects to meet public needs may expropriate or use land, goods and rights prescribed in Article 3 of the Act on Acquisition of and Compensation for Land for Public Works Projects with regard to unoccupied houses within project zones: |
| 1. | Subparagraphs 1 and 2 of Article 9: Provided, That this shall apply only where unoccupied houses are used as housing units, fundamental infrastructure, joint-use facilities, etc.; |
| 2. | Subparagraph 4 of Article 9. |
| (2) | Except as otherwise provided in this Act, the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply mutatis mutandis to expropriation or use of unoccupied houses under Article (1): Provided, That criteria and procedures for compensation for any loss caused by the implementation of projects may be prescribed by Presidential Decree. |
| (3) | Where public notice is given with respect to authorization for a project implementation plan (referring to public notice of a written project implementation plan where the head of a Si/Gun directly implements a project) that includes the details of land, goods or rights to be expropriated or used as prescribed in subparagraph 6 of Article 13 pursuant to paragraph (1), project approval or public notice thereof shall be deemed given under Articles 20 (1) or 22 of the Act on Acquisition of and Compensation for Land for Public Works Projects. |
| (4) | An application for adjudication on expropriation or use prescribed in paragraph (1) shall be filed within the project implementation period determined at the time of authorization for a project implementation plan (including authorization for an amendment to a project implementation plan), notwithstanding Articles 23 (1) and 28 (1) of the Act on Acquisition of and Compensation for Land for Public Works Projects. |
[This Article Newly Inserted on Apr. 13, 2021]
SECTION 3 Authorization for Project Implementation Plans
| Article 12 (Authorization for Project Implementation Plans) |
| (1) | To implement an unoccupied house improvement project as prescribed in subparagraph 2 or 4 of Article 9, a project implementer (excluding any project implementer that is the head of a Si/Gun; hereafter in this Article, the same shall apply) shall formulate a project implementation plan under Article 13; submit it to the head of the relevant Si/Gun; and obtain authorization for the project implementation plan. The same shall also apply to any amendment to approved matters: Provided, That the project implementer shall report any amendment to minor matters prescribed by Presidential Decree to the head of the relevant Si/Gun. |
| (2) | The head of a Si/Gun shall determine whether to authorize a project implementation plan submitted under paragraph (1) (including any amendment to such project implementation plan) and notify the relevant project implementer of his or her determination within 60 days from the date it is submitted, unless there is a compelling reason not to do so. |
| (3) | To authorize a project implementation plan pursuant to paragraph (1) (including a project implementation plan directly formulated by the head of a Si/Gun) or authorize any amendment thereof (including any amendment to a project implementation plan directly formulated by head of a Si/Gun), the head of a Si/Gun shall publicly notify the details thereof in the public gazette of the relevant local as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters under the proviso of paragraph (1). |
| Article 13 (Formulation of Project Implementation Plans) |
A project implementer shall formulate a project implementation plan, which includes the following matters: Provided, That the matters prescribed in paragraphs 3 and 4 shall be included only if an unoccupied house improvement project is implemented as prescribed in subparagraph 4 of Article 9: <Amended on Jan. 12, 2021; Apr. 13, 2021>
| 1. | Project zone and the area thereof; |
| 2. | Land utilization plans (including a building layout plan); |
| 3. | Plans to construct fundamental infrastructure and joint-use facilities; |
| 4. | Plans to build rental housing; |
| 5. | A building plan regarding the height, floor area ratio, etc. of structures; |
| 6. | Details of land, goods or rights to be expropriated or used and the names and addresses of the owners or right holders thereof; |
| 7. | Other matters prescribed by municipal ordinance of the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, a Do, or the Special Self-Governing Province, as prescribed by Presidential Decree, or a large city with a population of at least 500,000, excluding the Seoul Special Metropolitan City, Metropolitan Cities and the Special Self-Governing City under Article 198 of the Local Autonomy Act (hereinafter referred to as "City/Do ordinance"), as necessary for implementing an unoccupied house improvement project. |
| Article 14 (Public Notice of Approval of Completion and Completion of Construction Works) |
| (1) | Upon completing construction works for an unoccupied house improvement project as prescribed in subparagraph 2 or 4 of Article 9, the relevant project implementer (excluding any project implementer that is the head of a Si/Gun) shall obtain approval of completion from the head of the relevant Si/Gun as prescribed by Presidential Decree. |
| (2) | Upon receipt of an application for approval of completion pursuant to paragraph (1), the head of a Si/Gun shall perform a final inspection without delay and grant approval of completion, if the unoccupied house improvement project is determined complete as specified in the approved project implementation plan based on the findings from the final inspection, and publicly notify such fact in the public gazette of the local government. |
| (3) | Upon completing construction works for an unoccupied house improvement project directly implemented as prescribed in subparagraph 2 or 4 of Article 9, the head of a Si/Gun shall publicly notify such completion in the public gazette of the relevant local government. |
| (4) | Where completion of construction works is publicly notified pursuant to paragraph (2) or (3), matters on which the head of a Si/Gun has consulted with the heads of relevant administrative agencies concerning a final inspection, approval of completion, pre-use inspection, approval for use, etc. (hereinafter referred to as "final inspection or similar process") pursuant to authorization, permission, approval, reports, consultation, or consent (hereinafter referred to as "authorization, permission, etc.") deemed granted, filed, or obtained under Article 55, shall be deemed to have undergone the relevant final inspection or similar process. |
| Article 15 (Building Unoccupied House Information System) |
| (1) | A Mayor/Do Governor may build an information system for efficiently improving unoccupied houses (hereinafter referred to as "unoccupied house information system") based on findings from fact-finding surveys. |
| (2) | Unoccupied house information systems may be linked to the electronic information processing system built under Article 32 of the Building Act. |
| (3) | A Mayor/Do Governor may request data or information prescribed by Presidential Decree from the heads of relevant administrative agencies or the heads of public institutions, if necessary for building an unoccupied house information system. In such cases, the heads of agencies or institutions in receipt of such request shall comply therewith unless there is a compelling reason not to do so. |
| (4) | A Mayor/Do Governor may require a specialized institution prescribed by Presidential Decree to build and operate an unoccupied house information system. |
| (5) | Where it is necessary for preventing accidents, crimes, etc., a Mayor/Do Governor may provide information on unoccupied houses processed by an unoccupied information system to the heads of related administrative agencies or the heads of related public institutions. In such cases, information on unoccupied house areas which are prescribed by Presidential Decree shall be provided without delay to the Commissioner of the City/Do Police Agency having jurisdiction over the zone. <Amended on Apr. 23, 2019; Dec. 22, 2020> |
| (6) | Only when the owner of an unoccupied house has consented, a Mayor/Do Governor may disclose information on the unoccupied house processed by an unoccupied house information system through the Internet as well as by other means for achieving the purpose of utilizing the unoccupied house. |
CHAPTER III SMALL-SCALE HOUSING IMPROVEMENT PROJECTS
SECTION 1 Methods for Implementing Small-Scale Housing Improvement Projects
| Article 16 (Methods for Implementing Small-Scale Housing Improvement Projects) |
| (1) | An autonomous housing improvement project shall be implemented by the project implementer either ameliorating or constructing housing directly after the project implementation plan is authorized pursuant to Article 29. |
| (2) | A housing improvement project in a city block shall be implemented all or part of a city block by constructing and supplying, preserving or ameliorating housing, etc. according to a project implementation plan authorized pursuant to Article 29. |
| (3) | A small-scale improvement project shall be implemented by constructing and supplying housing, appurtenant and welfare facilities, or officetels (referring to officetels among the business facilities referred to in Article 2 (2) of the Building Act) according to a project implementation plan authorized pursuant to Article 29: Provided, That if inevitable to implement a project, any of the following land or buildings located outside a housing complex may be included in implementing the project, to the extent not exceeding the inclusion area prescribed by Presidential Decree: <Amended on Mar. 13, 2018; Oct. 19, 2021> |
| 1. | Land or a building necessary for installing fundamental infrastructure, such as access road, and joint-use facilities; |
| 2. | Land or a building where construction work is impossible; |
| 3. | Land or a building that a Mayor/Do Governor deems necessary for the shaping, etc. of sites following integrated deliberation conducted pursuant to Article 27. |
| (4) | A small-scale redevelopment project shall be implemented by constructing and supplying buildings, such as houses, in accordance with the project implementation plan authorized under Article 29. <Newly Inserted on Jul. 20, 2021> |
| Article 17 (Implementers of Small-Scale Housing Improvement Projects) |
| (1) | An autonomous housing improvement project may be directly implemented by at least two owners of land or other property or jointly with any of the following persons: |
| 2. | The Korea Land and Housing Corporation or any similar entity; |
| 4. | A registered project operator; |
| 5. | A trust business entity; |
| 6. | A real estate investment trust. |
| (2) | Notwithstanding paragraph (1), one owner of land or other property may implement an autonomous housing improvement project, where public rental housing prescribed in subparagraph 1 (a) of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public rental housing") is constructed in a ratio of at least 50 percent (referring to the ratio of the total floor area of the public rental housing to the total floor area of the building or the ratio of the total number of public rental housing households to the total number of households) by implementing the autonomous housing improvement project and may implement such project in any area other than regions under Article 2 (1) 3. <Amended on Aug. 20, 2019; Jul. 20, 2021> |
| (3) | A housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project may be implemented as follows: <Amended on Jul. 20, 2021> |
| 1. | Where the number of owners of land or other property is less than 20, they may implement it directly or jointly with any person referred to in any subparagraph of paragraph (1); |
| 2. | An association established pursuant to Article 23 may implement it directly or jointly with any person referred to in any subparagraph of paragraph (1) with the consent of a majority of association members. |
| Article 17-2 Deleted. <Apr. 18, 2023> |
| Article 18 (Designation of Public Implementers of Housing Improvement Projects in City Blocks or Small-Scale Reconstruction Projects) |
| (1) | Where a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project falls under any of the following, the head of a Si/Gun may directly implement the project or designate the Korea Land and Housing Corporation or any similar entity (including where the Korea Land and Housing Corporation or any similar entity implements the project jointly with a registered project operator; hereafter in this Article and Article 20, the same shall apply) as the project implementer, notwithstanding Article 17 (3): <Amended on Jul. 20, 2021; Feb. 3, 2022> |
| 1. | Where it is necessary to urgently implement such project due to a natural disaster, restriction on or prohibition of use under Article 27 of the Framework Act on the Management of Disasters and Safety or Article 23 of the Special Act on the Safety Control and Maintenance of Establishments, or other unavoidable reasons; |
| 2. | Where no application for authorization for the project implementation plan is filed under Article 29 within three years from the date the owners of land or other property reported a residents' consensus body under Article 22 or the date the owners of land or other property obtained authorization to establish an association under Article 23; |
| 3. | Where it is impracticable for the relevant association or the owners of land or other property to continue the project due to a long delay in the project or a dispute over rights and interests; |
| 4. | Where authorization for the project implementation plan is revoked pursuant to Article 54 (4); |
| 5. | Where the area of State or publicly-owned land or the total area of the State or publicly-owned land and land owned by the Korea Land and Housing Corporation or any similar entity is at least 1/2 of the total land area of the project zone and a majority of the owners of land or other property in the project zone consent to designate the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity as the project implementer; |
| 6. | Where landowners who own at least 1/2 of the land area in the project zone and at least 2/3 of the owners of land or other property request the designation of the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity as the project implementer. |
| (2) | Where the head of a Si/Gun directly implements a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project, or designates the Korea Land and Housing Corporation or any similar entity as the project implementer pursuant to paragraph (1), he or she shall gather consensus from residents by making it available for inspection for at least 14 days and shall publicly notify matters prescribed by Presidential Decree, such as the project zone, in the public gazette of the relevant local government: Provided, That in cases falling under paragraph (1) 1, he or she shall without delay notify the owners of land or other property as to why, when and how the project is to be implemented, and other information. <Amended on Jul. 20, 2021; Feb. 3, 2022> |
| (3) | Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings regarding the project zone under paragraph (2). <Newly Inserted on Apr. 18, 2023> |
| (4) | When the project implementer is designated and publicly notified pursuant to paragraph (2), the report on the residents' consensus body or the authorization to establish an association shall be deemed revoked on the day following the date of public notice. <Amended on Apr. 18, 2023> |
[Title Amended on Jul. 27, 2021]
| Article 19 (Designation of Qualified Developers of Small-Scale Housing Improvement Projects) |
| (1) | When persons who meet or exceed the requirements for consent to establish an association for a housing improvement project in a city block, a small-scale reconstruction project or small-scale redevelopment project under Article 23 consent to designate a trust business entity who meets requirements prescribed by Presidential Decree (hereinafter referred to as "qualified developer") as the project implementer, the head of the relevant Si/Gun may designate a qualified developer as the project implementer to implement the relevant project. <Amended on Jul. 20, 2021> |
| (2) | When the head of a Si/Gun designates a qualified developer as the project implementer pursuant to paragraph (1), he or she shall gather consensus from residents by making it available for inspection for at least 14 days and shall publicly notify matters prescribed by Presidential Decree, such as the project zone, in the public gazette of the relevant local government. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings regarding the project zone. <Amended on Feb. 3, 2022; Apr. 18, 2023> |
| (3) | Before obtaining consent to designate a project implementer pursuant to paragraph (1), the qualified developer shall provide information on the following matters to each owner of land or other property: |
| 1. | The estimated charge apportioned to the owners of each plot of land or each structure and the ground for calculating the amount; |
| 2. | Other matters prescribed by City/Do ordinance relating to the calculation, etc. of the estimated charge. |
| (4) | When the project implementer is designated and publicly notified pursuant to paragraph (2), the report on the residents' consensus body or the authorization to establish an association shall be deemed revoked on the day following the date of public notice. |
[Title Amended on Jul. 20, 2021]
| Article 20 (Selection of Contractors) |
| (1) | To implement a small-scale housing improvement project, the owners of land or other property shall first report on the residents' consensus body pursuant to Article 22 and select a constructor or registered project operator as the contractor as prescribed in the written agreement of residents. |
| (2) | To implement a small-scale housing improvement project, an association shall select a constructor or registered project operator as the contractor at a general meeting of the association (where the association implements such project jointly with the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity, the consent of a majority of the members of the association may be substituted for such resolution of a general meeting of the association) through competitive bidding determined and publicly notified by the Minister of Land, Infrastructure and Transport or a negotiated contract (limited to where competitive bidding has failed at least twice) after obtaining authorization to establish the association: Provided, That the association may select the contractor for a small-scale housing improvement project not exceeding the scale prescribed by Presidential Decree at a general meeting of the association, as prescribed by the articles of association. <Amended on Aug. 18, 2020; Feb. 3, 2022> |
| (3) | Where the head of a Si/Gun directly implements a project, designates the Korea Land and Housing Corporation or any similar entity, as a project implementer under Article 18 (1), or designates a qualified developer as a project implementer to implement a project pursuant to Article 19 (1), the project implementer shall select a constructor or registered project operator as the contractor after public notice is given pursuant to Article 18 (2) or 19 (2). |
| (4) | In selecting a contractor pursuant to paragraph (3), a resident representatives' committee or general meeting of owners of land or other property under Article 25 (2) or (3) may recommend the contractor through competitive bidding prescribed by Presidential Decree or a negotiated contract (limited to where competitive bidding has failed at least twice): Provided, That a contractor for a small-scale housing improvement project not exceeding the scale prescribed by Presidential Decree may be selected as otherwise determined at a resident representatives' committee or a general meeting of the owners of land or other property. |
| (5) | The project implementer shall select a contractor recommended at the resident representatives' committee or general meeting of owners of land or other property pursuant to paragraph (4) as the contractor. |
| (6) | In any of the following cases, Article 9 of the Act on Contracts to Which a Local Government Is a Party and Article 39 of the Act on the Management of Public Institutions shall not apply to any contract with a contractor: |
| 1. | Where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity jointly implements a small-scale housing improvement project pursuant to Article 17 (1) or (3); |
| 2. | Where the contractor recommended at the resident representatives' committee or general meeting of owners of land or other property is selected pursuant to paragraph (5). |
| (7) | When a project implementer enters into a construction contract with a contractor selected pursuant to paragraphs (1) through (6), the contract shall include works to demolish the existing buildings (including examination, dismantlement, and removal of asbestos under the Asbestos Safety Management Act). |
| (8) | Where an association or the owners of land or other property selects a person, other than the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity, as the contractor (including where a joint project implementer under Article 17 (1) or (3) performs construction works) to implement a small-scale housing improvement project, the contractor shall submit a written performance guarantee to the association or the owners of land or other property, to guarantee the performance of construction works. <Amended on Jun. 9, 2020> |
| Article 21 (Registration and Selection of Improvement Project Management Contractor) |
| (1) | A person who intends to be entrusted with the following matters from a person who intends to implement a small-scale housing improvement project or a project implementer or a person who intends to provide advice in relation thereto shall file for registration of an improvement project management contractor under Article 102 (1) of the Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as "improvement project management contractor"): Provided, That this shall not apply to an institution prescribed pursuant to the proviso, with the exception of the subparagraphs, of Article 102 (1) of that Act: <Newly Inserted on Apr. 18, 2023> |
| 1. | Acting as an agent to perform business affairs regarding consent to organizing a residents' consensus body and to establishing an association and consent to a small-scale housing improvement project; |
| 2. | Acting as an agent to perform business affairs regarding the report on the organization of a residents' consensus body and the application for authorization to establish an association; |
| 3. | Assessing the feasibility of a project and preparing the implementation plan for a small-scale housing improvement project; |
| 4. | Assisting in performing business affairs regarding the selection of a designer or contractor; |
| 5. | Acting as an agent to perform business affairs regarding the application for authorization for a project implementation plan; |
| 6. | Acting as an agent to perform business affairs regarding the formulation of a management and disposal plan. |
| (2) | If a residents' consensus body selects an improvement project management contractor, it shall do so in accordance with a written agreement of residents. <Amended on Apr. 18, 2023> |
| (3) | Where an association selects an improvement project management contractor, it shall do so at the general meeting of the association (where the association implements such project jointly with the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity, the consent of a majority of the members of the association may be substituted for a resolution at a general meeting of the association) through competitive bidding determined and publicly notified by the Minister of Land, Infrastructure and Transport or a negotiated contract (limited to where competitive bidding has failed at least twice). <Amended on Aug. 18, 2020; Feb. 3, 2022; Apr. 18, 2023> |
| (4) | Where an association selects or changes a designer, or an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers (excluding an appraisal corporations, etc. selected and contracted by the head of the Si/Gun), it shall be subject to the resolution of a general meeting of the association (where the association implements a project jointly with the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity, the consent of a majority of the members of the association may be substituted for a resolution at a general meeting of the association). <Newly Inserted on Aug. 18, 2020; Apr. 18, 2023> |
[Title Amended on Oct. 18, 2020; Apr. 18, 2023]
SECTION 2 Organization of Residents' Consensus Bodies and Establishment of Associations
| Article 22 (Organization of Residents' Consensus Bodies) |
| (1) | In implementing a small-scale housing improvement project as follows, the owners of land or other property shall organize a residents' consensus body by unanimous consent of the owners of land or other property: |
| 1. | Where an autonomous housing improvement project is to be implemented pursuant to Article 17 (1) and there are at least two owners of land or other property; |
| 2. | Where a housing improvement project in a city block or a small-scale reconstruction project is to be implemented pursuant to Article 17 (3) 1 and there are less than 20 owners of land or other property. |
| (2) | Where a small-scale redevelopment project is implemented pursuant to Article 17 (3) 1, a residents' consensus body shall be organized with the consent of at least 8/10 of the owners of land or other property and persons who own at least 2/3 of the area of the land (where State or publicly-owned land is included, the consent shall be deemed given if the managing authority over the relevant land submits to the head of a Si/Gun a document verifying that the land is sold or transferred to a project implementer; hereafter in paragraph (3), the same shall apply). In such cases, the owners of land or other property who do not consent to the organization of a residents' consensus body shall also be included in the members thereof. <Newly Inserted on Jul. 20, 2021> |
| (3) | Notwithstanding paragraph (1) 1, in cases of autonomous housing improvement projects implemented in a management area, a residents' consensus body may be organized with the consent of at least 8/10 of the owners of land or other property and persons who own at least 2/3 of the area of the land. In such cases, the owners of land or other property who do not consent to the organization of a residents' consensus body shall also be included in the members thereof. <Newly Inserted on Jul. 20, 2021> |
| (4) | Multi-family housing within a project zone shall require the consent of a majority (excluding where the number of unit owners in each building of multi-family housing does not exceed five) of unit owners in each building of multi-family housing (in cases of welfare facilities, all welfare facilities within a housing complex shall be deemed a single building), and any land or building other than the multi-family housing shall require the consent of persons who own at least 1/2 of the total area of the land in which the relevant land or building is located. <Newly Inserted on Jul. 20, 2021> |
| (5) | Where the owners of land or other property organizes a residents' consensus body, they shall appoint the representative of the residents' consensus body by unanimous consent of the owners of land or other property (referring to the consent of at least 8/10 of the owners of land or other property and persons who own at least 2/3 of the area of the land, where a residents' consensus body is organized under paragraphs (2) and (3)); and shall prepare a written agreement of residents, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and report the organization to the head of the relevant Si/Gun. <Amended on Jul. 20, 2021> |
| (6) | A written agreement of residents prepared under paragraph (5) shall contain the following matters: <Amended on Jul. 20, 2021> |
| 1. | Name of the residents' consensus body; |
| 2. | Location and scope of the project zone; |
| 3. | Purpose of the residents' consensus body and details of the project; |
| 4. | Names, addresses and dates of birth (or the registration number assigned pursuant to Article 49 of the Registration of Real Estate Act in cases of a corporation, an association or foundation other than a corporation, or a foreigner; hereinafter the same shall apply) of members of the residents' consensus body; |
| 5. | Name, address and date of birth of the representative of the residents' consensus body; |
| 6. | Methods for selecting and changing a contractor or an improvement project management contractor; |
| 7. | Matters to be decided by the residents' consensus body and the method of making decisions; |
| 8. | Other matters prescribed by City/Do ordinance as necessary to organize and operate the residents' consensus body. |
| (7) | Where the representative of a residents' consensus body amends any matter reported pursuant to paragraph (5), he or she shall file a report on the amendment as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters prescribed by Presidential Decree. <Amended on Jul. 20, 2021> |
| (8) | If a residents' consensus body organized under paragraphs (1) through (3) satisfies all of the following requirements, it may implement a small-scale housing improvement project under this Act by converting the ongoing project into such improvement project, after filing a report on amendments with the head of a Si/Gun, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Newly Inserted on Apr. 18, 2023> |
| 1. | It shall be prior to the filing of an application for authorization for a project implementation plan under Article 29; |
| 2. | The ongoing project shall satisfy all requirements prescribed in Article 2 (1) 3 with respect to a project into which it is intended to be converted; |
| 3. | The requirements for consent to form a residents' consensus body prescribed in paragraphs (1) through (3) shall be satisfied with respect to a project into which the ongoing project is intended to be converted. |
| (9) | To dissolve a residents' consensus body, the representative of the residents' consensus body shall file a report on the dissolution with the head of the relevant Si/Gun, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, with the consent of a majority of members of the residents' consensus body. <Amended on Jul. 20, 2021; Apr. 18, 2023> |
| (10) | Upon receiving a report on the organization of a residents' consensus body under paragraph (5) (including where any matter reported pursuant to paragraph (7) or (8) is amended) or a report on dissolution under paragraph (9), the head of the relevant Si/Gun shall gather consensus from residents by making it available for inspection for at least 14 days and shall publicly notify the relevant details in the public gazette of the relevant local government. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings regarding the project zone. <Newly Inserted on Feb. 3, 2022; Apr. 18, 2023> |
| (11) | Article 24 shall apply mutatis mutandis to qualifications, etc. for the owners of land or other property. In such cases, "authorization to establish an association" shall be construed as "report on the organization of a residents' consensus body". <Newly Inserted on Jul. 20, 2021; Feb. 3, 2022; Apr. 18, 2023> |
| Article 23 (Authorization to Establish Associations) |
| (1) | To establish an association, the owners of land or other property of a housing improvement project in a city block shall hold an inaugural general meeting to establish an association (hereinafter referred to as "inaugural general meeting") with consent from at least 8/10 of the owners of land or other property and from persons who own at least 2/3 of the total area of land and shall obtain authorization for such establishment from the head of the relevant Si/Gun by submitting the following documents; in such cases, multi-family housing within the project zone shall require the consent of a majority (excluding where the number of the unit owners in each building of multi-family housing does not exceed five) of the unit owners in each building of multi-family housing (in cases of welfare facilities, all welfare facilities within the housing complex shall be construed as a single building); and any land or building shall require the consent of persons who own at least 1/2 of the total area of the relevant land or the land in which the relevant building is located: <Amended on Feb. 3, 2022> |
| 1. | The articles of incorporation; |
| 2. | Documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as data related to the cost of implementing the small-scale housing improvement project (hereinafter referred to as “improvement project costs”) including the construction costs; |
| 3. | Other documents specified by City/Do ordinance. |
| (2) | To establish an association, the owners of land or other property of a small-scale reconstruction project shall hold an inaugural general meeting with consent from a majority (excluding where the number of the unit owners in each building of multi-family housing is not more than five) of the unit owners in each building of multi-family housing (in cases of welfare facilities, all welfare facilities within the housing complex shall be construed as a single building), persons who own at least 3/4 of all unit owners in the housing complex, and persons who own at least 3/4 of the total area of the land and shall obtain authorization for such establishment from the head of the relevant Si/Gun by submitting the documents prescribed in the subparagraphs of paragraph (1). <Amended on Feb. 3, 2022> |
| (3) | Notwithstanding paragraph (2), if any area other than a housing complex is included in the project zone, the owners of land or other property shall obtain consent from at least 3/4 of the owners of the land or buildings located in the area other than a housing complex and from the persons who own at least 2/3 of the area of the land. |
| (4) | To establish an association, the owners of land or other property of a small-scale redevelopment project shall hold an inaugural general meeting with consent of at least 8/10 of owners of land or other property and landowners of at least 2/3 of the relevant land and shall obtain authorization for such establishment from the head of the relevant Si/Gun, by submitting the documents prescribed in the subparagraphs of paragraph (1). <Newly Inserted on Jul. 20, 2021; Feb. 3, 2022> |
| (5) | Where an association established under paragraph (1), (2), or (4) intends to amend any authorized matter, the association shall, after a resolution adopted with the affirmative vote of at least 2/3 of its members at a general meeting of the association, obtain authorization for such amendment from the head of the relevant Si/Gun by submitting the documents prescribed in the subparagraphs of paragraph (1): Provided, That minor matters prescribed by Presidential Decree may be amended after filing a report to the head of the relevant Si/Gun without a resolution adopted at a general meeting of the association. <Amended on Jul. 20, 2021> |
| (6) | If an association established under paragraphs (1), (2), and (4) satisfies all of the following requirements, it may implement a small-scale housing improvement project under this Act (excluding an autonomous housing improvement project) by converting the ongoing project into such improvement project, after acquiring authorization for an amendment from the head of the relevant Si/Gun, following a resolution adopted at a general meeting of the association under paragraph (5): <Newly Inserted on Apr. 18, 2023> |
| 1. | It shall be prior to the filing of an application for authorization for a project implementation plan under Article 29; |
| 2. | The ongoing project shall satisfy all requirements prescribed in Article 2 (1) 3 with respect to a project into which it is intended to be converted. |
| (7) | Where an association implements a housing improvement project in a city block, a small-scale reconstruction project, or a small-scale redevelopment project, the association shall be deemed a project entity defined in subparagraph 10 of Article 2 of the Housing Act, and shall be deemed to have filed for registration to implement a housing construction project, etc. under Article 4 of that Act on the date it is authorized to establish an association. <Amended on Jul. 20, 2021; Apr. 18, 2023> |
| (8) | An association shall be a corporation, and it shall hold general meetings of members, and the procedures, timing, etc. of calling general meetings shall be prescribed by its articles of incorporation. Except as provided in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to associations. <Amended on Jul. 20, 2021; Apr. 18, 2023> |
| (9) | When the head of a Si/Gun grants authorization to establish an association (including where any authorized matter is amended pursuant to paragraph (5) or (6)) under paragraph (1), (2), or (4), he or she shall gather consensus from residents by making it available for inspection for at least 14 days and shall publicly notify matters prescribed by Presidential Decree, including a project zone, in the public gazette of the relevant local government. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings regarding the project zone. <Newly Inserted on Feb. 3, 2022; Apr. 18, 2023> |
| (10) | Matters requiring consent from an owner of land or other property under paragraphs (1) through (6), procedures for obtaining such consent, methods and procedures for holding an inaugural general meeting, authorization to establish an association, amendments thereof, and other relevant matters shall be prescribed by Presidential Decree. <Amended on Jul. 20, 2021; Feb. 3, 2022; Apr. 18, 2023> |
| Article 23-2 (Revocation of Authorization to Establish Association) |
| (1) | Where a request to dissolve an association is made for a project zone for which the association is established with the consent of a majority of the association members (limited to cases where no application is filed for authorization for a project implementation plan), the head of the relevant Si/Gun shall revoke the authorization to establish the association. |
| (2) | The head of a Si/Gun may issue an order to take necessary measures, such as the correction of business affairs and the dissolution of the association or may revoke the authorization to establish the association, in any of the following cases: |
| 1. | Where no application for deliberation on construction under Article 26 or integrated deliberation under Article 27 is filed within two years from the date the authorization to establish the association is obtained under Article 23; |
| 2. | Where no application for authorization for the project implementation plan is filed under Article 29 within three years from the date the authorization to establish the association is obtained under Article 23; |
| 3. | Where the liquidation procedures prescribed in Article 41 are not followed by the date one year has elapsed from the date of public notice of transfer under Article 40 (2). |
| (3) | If the head of a Si/Gun revokes authorization to establish an association pursuant to paragraph (1) or (2), he or she shall publicly notify the details in the public gazette of the relevant local government. |
| (4) | Matters necessary for the procedures, methods, etc. for revoking authorization to establish an association under paragraph (1) or (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Feb. 3, 2022]
| Article 23-3 (Restriction on Acts) |
| (1) | A person who intends to conduct any act prescribed by Presidential Decree, such as constructing a building, installing a structure, changing the characteristics of land, collecting soil and rocks, dividing and merging land, and piling goods, in a project zone of a small-scale housing improvement project from the day following the date specified in the following, shall obtain permission from the head of the relevant Si/Gun, and the same shall apply to amending permitted matters: Provided, That this shall not apply where the designation of a public implementer or a qualified developer under Article 18 or 19 is revoked, where a residents' consensus body is dissolved under Article 22 (9), or where authorization to establish an association is revoked under Article 23-2: <Amended on Apr. 18, 2023> |
| 1. | The date the designation of a public implementer or a qualified developer is publicly notified under Article 18 (2) or 19 (2); |
| 2. | The date the organization of a residents' consensus body is publicly notified under Article 22 (10); |
| 3. | The date authorization to establish an association is publicly notified under Article 23 (9). |
| (2) | Any of the following acts may be conducted without obtaining permission, notwithstanding paragraph (1): |
| 1. | Acts for emergency measures necessary for relief or recovery from a disaster; |
| 2. | In cases where a safety-related accident is likely to occur, such as collapse of an existing building, acts for safety measures for the relevant building; |
| 3. | Other acts prescribed by Presidential Decree. |
| (3) | With respect to an act requiring permission under paragraph (1),where a person has commenced any works or project regarding such act, either with permission for the act obtained according to the relevant statutes or regulations or without permission obtained as at the time public notice under the subparagraphs of paragraph (1) was provided, the person may continue such works or project after filing a report thereon to the head of the relevant Si/Gun, as prescribed by Presidential Decree. |
| (4) | The head of a Si/Gun may order a person who violates paragraph (1) to undo the relevant act. If the person so ordered fails to perform such obligation, the head of the relevant Si/Gun may perform vicarious execution in accordance with the Administrative Vicarious Execution Act. |
| (5) | Except as provided in this Act, Articles 57 through 60 and 62 of the National Land Planning and Utilization Act shall apply mutatis mutandis to permission under paragraph (1). |
| (6) | Permission granted pursuant to paragraph (1) shall be deemed permission granted pursuant to Article 56 of the National Land Planning and Utilization Act. |
[This Article Newly Inserted on Feb. 3, 2022]
| Article 24 (Eligibility Requirements for Association Members) |
| (1) | Association members (where a project implementer is a trust business entity, referring to the trustor; hereafter in this Article the same shall apply) shall be owners of land or other property and, in any of the following cases, one representative of those owners shall be deemed an association member: <Amended on Feb. 3, 2022> |
| 1. | Where the ownership of a plot of land or structure and the surface right in the plot of land are co-owned or jointly held by several persons; |
| 2. | Where several owners of land or other property belong to one household. In such cases, a spouse and any unmarried lineal descendant under the age of 19, who are not registered on the resident registration record of the same household, shall be deemed to belong to one household; and even where several owners of land or other property, who have made a separate household and do not belong to the same household after obtaining the authorization to establish the association, they shall be deemed to belong to one household, excluding a divorce and statutory branch family established by offspring who is at least 19 years old (limited to where they do not actually live in the same place of residence, by separating the resident registration of the household); |
| 3. | Where the ownership of a plot of land or structure or the surface right in the plot of land, owned or held by one person, has been transferred to several persons after obtaining the authorization to establish the association (referring to the designation of the project implementer, if a trust business entity was designated as the project implementer pursuant to Article 19 (1) before obtaining the authorization to establish the association; hereafter in this Article the same shall apply). |
| (2) | Where a housing improvement project in a city block, a small-scale reconstruction project, or a small-scale redevelopment project is implemented within an area designated as a high speculation area under Article 63 (1) of the Housing Act (hereinafter referred to as "high speculation area"), a person who has acquired (including sale and purchase, donation, or any other act changing any right, but excluding transfer or acquisition upon inheritance or divorce; hereafter in this Article, the same shall apply) a building or land involved in the small-scale reconstruction project after obtaining the authorization to establish an association, is ineligible to be a member of the association, notwithstanding paragraph (1): Provided, That this shall not apply to any person who has acquired a building or land from a transferor, where the transferor falls under any of the following cases: <Amended on Jun. 9, 2020; Jul. 20, 2021; Feb. 3, 2022; Apr. 18, 2023> |
| 1. | Where all members of his or her household (referring to the members of a household to which the head of the household belongs; hereafter in this Article, the same shall apply) relocate to the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, the Special Self-Governing Province, a Si, or a Gun in which the relevant project zone is not located, due to any change in the place of work, the maintenance of livelihood, treatment of disease (limited to where the head of a medical institution defined in Article 3 of the Medical Service Act deems it necessary to receive treatment or medical care for at least one year), school attendance, or marriage of his or her household member; |
| 2. | Where all members of his or her household relocate to the house acquired by inheritance; |
| 3. | Where all members of his or her household migrate to a foreign country or stay abroad for at least two years; |
| 4. | Where his or her household (referring to when belonging to one household under paragraph (1) 2) holds a single house insofar as the period of ownership and the period of residence (based on the resident registration record card under Article 7 of the Resident Registration Act; if the owner has not resided in the house while his or her spouse or any lineal ascendant or descendant has resided in the house, such period shall be counted towards the period of residence) is equal to or longer than the period prescribed by Presidential Decree (if the owner has acquired the ownership after being inherited from the decedent, the period of ownership and the period of residence of the decedent shall be counted towards the period); |
| 5. | In cases prescribed by Presidential Decree where he or she transfers a structure or a plot of land due to any unavoidable cause. |
| (3) | A project implementer shall compensate a person who has acquired land, a building or other rights but is ineligible to be a member of an association pursuant to the main clause, with the exception of the subparagraphs, of paragraph (2), by applying mutatis mutandis Article 36. |
| Article 25 (How Owners Land or Other Property Give Consent) |
| (1) | Consent (including the withdrawal of consent) to any of the following matters shall be obtained by entering the name of the owner of land or other property in a written consent and affixing his or her name thereto, accompanied by a copy of an identification card, such as a resident registration certificate and passport, which verifies identification; in such cases, in cases falling under subparagraph 3, a written consent certified by the head of the relevant Si/Gun by the method prescribed by Presidential Decree shall be used, and an uncertified written consent shall not take effect: <Amended on Jul. 20, 2021; Feb. 3, 2022; Apr. 18, 2023> |
| 1. | Where the owner of land or other property implements a small-scale housing improvement project pursuant to any subparagraph of Article 17 (1) or (3); |
| 1-2. | Deleted; <Apr. 18, 2023> |
| 2. | Where a public implementer or qualified developer for a housing improvement project in a city block, a small-scale housing improvement project or a small-scale redevelopment project is designated pursuant to Article 18 or 19; |
| 2-2. | Where a residents' consensus body is organized pursuant to Article 22 (2) through (5); |
| 3. | Where an association is established pursuant to Article 23 (1) through (5); |
| 4. | Where a resident representatives' committee is established pursuant to paragraph (2); |
| 5. | Where an application is filed to obtain authorization for a project implementation plan pursuant to Article 29 (3). |
| (2) | Where the owners of land or other property of a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project designates the head of the relevant Si/Gun or the Korea Land and Housing Corporation or any similar entity as the project implementer, they shall establish an organization representing the residents (hereinafter referred to as "resident representatives' committee"). <Amended on Jul. 20, 2021> |
| (3) | Where a qualified developer designated under Article 19 implements a small-scale housing improvement project, the owners of land or other property thereof shall organize a meeting attended by all owners of land or other property (hereinafter referred to as "general meeting of owners of land or other property"). In such cases, the qualified developer shall have the matters prescribed in the subparagraphs of Article 48 (1) of the Act on the Improvement of Urban Areas and Residential Environments resolved upon at a general meeting of owners of land or other property. |
| (4) | Matters necessary for methods and procedures for calculating the number of the owners of land or other property who have given consent under paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted on Aug. 20, 2019> |
SECTION 3 Project Implementation Plans
| Article 26 (Deliberation on Construction) |
| (1) | The project implementer (excluding where the project implementer is the head of a Si/Gun) of a housing improvement project in a city block, a small-scale reconstruction project or small-scale redevelopment project shall submit matters prescribed by Presidential Decree, such as heights, numbers of floors, and the floor area ratios of buildings, to the relevant local building committee for deliberation before formulating a project implementation plan pursuant to Article 30. <Amended on Jul. 20, 2021> |
| (2) | A project implementer (excluding the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity) shall obtain any of the following consent or resolutions before applying for deliberation to the local building committee under paragraph (1): <Amended on Aug. 18, 2020> |
| 1. | Where the project implementer is an owner of land or other property, the consent of the owners of land or other property specified in the written agreement of residents; |
| 2. | Where the project implementer is an association, a resolution adopted with the affirmative vote of a majority of the members of the association at a general meeting of the association (where the association implements such project jointly with the head of the Si/Gun or the Korea Land and Housing Corporation or any similar entity, the consent of a majority of the members of the association may be substituted for a resolution at a general meeting of the association): Provided, That if the improvement project costs increase by at least 10/100 (excluding the portion of producer price inflation rate and compensation given under Article 36), a resolution adopted with the affirmative vote of at least 2/3 of the members of the association; |
| 3. | Where the project implementer is a qualified developer, consent of a majority of all owners of land or other property and consent of persons who own at least 1/2 of the total area of land. |
| Article 27 (Integrated Deliberation) |
| (1) | Where it is necessary to deliberate on at least two of the following matters regarding a small-scale housing improvement project, the head of the relevant Si/Gun shall conduct deliberation by integrating them together (hereinafter referred to as "integrated deliberation"): Provided, That where a special-purpose area or district of an urban/Gun management plan referred to in subparagraph 2 is designated or altered; or where rental housing is constructed up to the statutory maximum floor area ratio pursuant to Articles 49 (1) and 49-2 (1) and (3) or rental housing is constructed in excess of the statutory maximum floor area ratio under Article 49-2 (4), he or she shall request a Mayor/Do Governor to conduct integrated deliberation, and where the Mayor/Do Governor conducts integrated deliberation, integrated deliberation by the head of the Si/Gun shall be deemed completed: <Amended on Oct. 19, 2021; Apr. 18, 2023> |
| 1. | Deliberation on construction under the Building Act (including deliberation under Articles 26 and 48 (1)); |
| 2. | Matters related to urban/Gun management planning and development activities under the National Land Planning and Utilization Act; |
| 3. | Other matters submitted by the head of the Si/Gun for integrated deliberation, as deemed necessary. |
| (2) | Where the head of a Si/Gun conducts integrated deliberation, the project implementer shall submit documents related to the subparagraphs of paragraph (1). In such cases, the head of the relevant Si/Gun may set a deadline for submission, etc. to efficiently proceed with the integrated deliberation. |
| (3) | Where integrated deliberation is to be conducted, the head of a Si/Gun shall establish a joint committee including members of any of the following committees: |
| 1. | The local building committee; |
| 2. | The local urban planning committee; |
| 3. | A related committee which has the authority to deliberate on matters referred to in paragraph (1) 3. |
| (4) | If integrated deliberation is conducted, examinations, deliberation, investigation, consultation, coordination or adjudication shall be deemed conducted regarding the matters prescribed in the subparagraphs of paragraph (1). |
| (5) | Article 18 (3) of the Housing Act shall apply mutatis mutandis to filing applications for integrated deliberation and the method and procedure for conducting integrated deliberation. |
| Article 28 (Public Announcement of Building Sites or Units for Sale and Applications to Purchase Building Sites or Units) |
| (1) | Within 90 days from the date of receipt of outcomes of deliberation conducted under Article 26, the project implementer of a housing improvement project in a city block, a small-scale reconstruction project or small-scale redevelopment project shall notify each owner of land or other property of the following matters; and shall publicly announce matters prescribed by Presidential Decree, such as the details of sites or buildings for sale in units, in a daily newspaper distributed in the relevant area: <Amended on Jul. 20, 2021> |
| 1. | A detailed statement of the land or building previously held by each qualified purchaser, and the prices thereof as at the date the outcomes of deliberation conducted under Article 26 is notified (or the prices as at the date of permission by the head of the relevant Si/Gun, if buildings are demolished under Article 37 (3) before deliberation is conducted under Article 26); |
| 2. | The estimated amount of the charge apportioned to each eligible purchaser; |
| 3. | The period for filing applications to purchase a building site or unit; |
| 4. | Other matters prescribed by Presidential Decree. |
| (2) | The filing period for applications for sale in units under paragraph (1) 3 shall be within at least 30 days but not exceeding 60 days from the date of notification to the owners of land or other property pursuant to paragraph (1): Provided, That the project implementer may extend the filing period for applications for sale in units only once by up to 20 days, if such extension is deemed not hindering the formulation of management and disposal plans under Article 33 (1). |
| (3) | Any owner of land or other property who intends to purchase land or a building in units, shall file an application for sale in units within the filing period for applications for sale in units set under paragraph (2), as prescribed by Presidential Decree. |
| (4) | Where the number of households or the size of a house changes due to any amendment to the authorized project implementation plan (excluding any amendment to minor matters prescribed by Presidential Decree) pursuant to Article 29 (1) after the expiration of the filing period for applications for sale in units set under paragraph (2), the project implementer may follow procedures newly for publicly announcing, etc. the sale in units in accordance with paragraphs (1) through (3). |
| (5) | The project implementer may allow the owners of land or other property prescribed in Article 36 (1) 1 and 2 to newly file applications for sale in units pursuant to Article (4), if provided for in the articles of association, etc. (referring to the articles of association, etc. defined in subparagraph 11 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments; hereinafter the same shall apply) or a resolution is adopted at a general meeting. |
| Article 28-2 (Base Date for Determining Rights to Purchase Building Units of Small-Scale Redevelopment Projects) |
| (1) | In any of the following cases, a right to purchase a unit of structure built by implementing an improvement project shall be determined as of the day immediately following either the date of public notice under Article 18 (2), 19 (2), 22 (10), or 23 (9) or the date the competent Mayor/Do Governor separately determines (hereafter in this Article referred to as "base date") to control speculation before publicly notifying the designation of a project implementer, the organization of a residents' consensus body, or the authorization to establish an association: <Amended on Apr. 18, 2023> |
| 1. | Where one lot of land is divided into several lots; |
| 2. | Where a detached house or multi-unit house is converted to a multi-household house; |
| 3. | Where land and a building, such as houses, in one tract of land, which is owned by the same person is divided land and a building, such as a house, to be separately owned; |
| 4. | Where the number of owners of land or other property increases after a new building is constructed in a vacant lot or after an existing building is demolished and a multi-household house or any other multi-family housing is constructed. |
| (2) | Where the head of a Si/Gun separately specifies the base date pursuant to paragraph (1), he or she shall publicly notify the base date, the grounds for designation, the criteria for determining a right to purchase a unit of building and other relevant information in the public gazette of the relevant local government. |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 29 (Authorization for Project Implementation Plans) |
| (1) | A project implementer (excluding where a project implementer is the head of a Si/Gun) who intends to implement a small-scale housing improvement project shall obtain authorization for its project implementation plan by submitting a project implementation plan formulated under Article 30 (hereinafter referred to as "project implementation plan") to the head of the relevant Si/Gun along with the articles of association, etc. and other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and the same shall also apply to any amendment to approved matters: Provided, That any amendment to minor matters prescribed by Presidential Decree shall be reported to the head of the relevant Si/Gun. |
| (2) | The head of a Si/Gun shall determine whether to authorize a project implementation plan submitted under paragraph (1) (including any amendment to such project implementation plan) and notify the relevant project implementer of his or her determination within 60 days from the date it is submitted, unless there is a compelling reason not to do so. |
| (3) | A project implementer (excluding the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity) shall obtain consent or a resolution prescribed in the subparagraphs of Article 26 (2) before applying for authorization for its project implementation plan, and the same shall also apply where the project implementer intends to amend any approved matter, or to suspend or abandon the project: Provided, That this shall not apply to any amendment to minor matters under the proviso of paragraph (1). |
| (4) | Notwithstanding the main clause of paragraph (3), the project implementer of a project prescribed in Article 18 (1) 1 (hereinafter referred to as "at-risk house improvement project") need not obtain consent from the owners of land or other property. |
| (5) | Where the head of a Si/Gun authorizes a project implementation plan pursuant to paragraph (1) (including where the head of a Si/Gun formulates a project implementation plan) or amends, suspends, or abandons a project, he or she shall publicly notify the details thereof in the public gazette of the relevant local government as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters under the proviso of paragraph (1). |
| (6) | To authorize a project implementation plan or to formulate a project implementation plan pursuant to Article 30, the head of a Si/Gun shall make copies of related documents available to the general public for inspection for at least 14 days. <Amended on Aug. 20, 2019> |
| (7) | An owner of land or other property, interested party, etc. may present a written opinion to the head of the relevant Si or Gun during the period specified for public inspection under paragraph (6). <Newly Inserted on Aug. 20, 2019> |
| Article 30 (Formulation of Project Implementation Plans) |
| (1) | A project implementer shall formulate a project implementation plan, which includes the following matters: Provided, That it shall include matters prescribed in subparagraphs 1, 2, 3, 6 and 7 only in cases of an autonomous housing improvement project: <Amended on Jul. 20, 2021> |
| 1. | Project zone and the area thereof; |
| 2. | Land utilization plans (including a building layout plan); |
| 3. | Plans to construct fundamental infrastructure and joint-use facilities; |
| 4. | Measures to relocate residents, including temporary accommodation; |
| 5. | Crime prevention measures in the project zone during the project implementation period, such as installation of street lights and closed-circuit television cameras; |
| 6. | Plans to build rental housing; |
| 7. | Building plans specifying the heights, floor area ratios, etc. of buildings (where a construction agreement has been concluded pursuant to Article 77-4 of the Building Act, including the details of the construction agreement); |
| 8. | Plans to dispose of waste generated in the course of implementing the project; |
| 9. | The improvement project costs; |
| 10. | A management and disposal plan, which includes a plan for sales in units; |
| 10-2. | Where a project is implemented by expropriating or using land, goods or rights under Article 35-2, the details of the land, goods or rights to be expropriated or used and the names and addresses of the owners and right holders thereof; |
| 11. | Other matters specified by City/Do ordinance, as prescribed by Presidential Decree, for implementing projects. |
| (2) | Where a project implementer includes a plan to construct public housing defined in subparagraph 1 of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public housing") in the project implementation plan it formulates under paragraph (1), the project implement shall comply with Article 37 of the Special Act on Public Housing regarding matters necessary for the standards for the structures, functions, and facilities of the public housing, the scope of and standards for installation of appurtenant and welfare facilities, and other relevant matters. |
| Article 31 (Formulation of Implementation Rules) |
The head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity, or a qualified developer shall establish implementation rules which include the following matters to solely implement a small-scale housing improvement project:
| 1. | The type and name of the small-scale housing improvement project; |
| 2. | The year in which and how the small-scale housing improvement project is implemented; |
| 3. | Cost apportionment and accounting; |
| 4. | Rights and obligations of the owners of land or other property; |
| 5. | Apportionment of costs of fundamental infrastructure and common facilities; |
| 6. | Methods for public announcement, public inspection and notification; |
| 7. | Methods for valuation of rights and interests in land and structures; |
| 8. | A management and disposal plan and cash settlements (including matters concerning collection and payment in installments): Provided, That the shame shall not apply where a project is implemented by expropriating property; |
| 9. | Amendments to implementation rules; |
| 10. | Amendments of the project implementation plan; |
| 11. | Appropriation of the cost for project management in accordance with the standards prescribed by Presidential Decree (limited to where the project implementer is the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity); |
| 12. | General meetings of owners of land or other property (limited to cases where the project implementer is a qualified developer). |
| Article 32 (Scale of Housing and Construction Ratio) |
| (1) | The implementer of a housing improvement project in a city block shall supply housing units in at least the same number as the aggregate of the number of existing detached houses and the number of all households in multi-family housing located in the project zone. In such cases, the number of floors, etc. of buildings to be constructed shall be prescribed by Presidential Decree. |
| (2) | To stabilize housing supply and to give more opportunities to low-income residents, the Minister of Land, Infrastructure and Transport may determine and publicly notify the percent of houses to be constructed in the size of national standard housing defined in subparagraph 6 of Article 2 of the Housing Act through small-scale housing improvement projects within the limit prescribed by Presidential Decree, not exceeding 90 percent of the total number of households. |
| Article 33 (Contents of Management and Disposal Plans and Standards for Formulation Thereof) |
| (1) | Upon the expiration of the filing period for applications for sale in units set under Article 28, the project implementer of the relevant housing improvement project in a city block, small-scale reconstruction project or small-scale redevelopment project shall formulate a management and disposal plan referred to in Article 30 (1) 10, which includes the following matters, based on the status of applications for sale in units: <Amended on Jul. 20, 2021> |
| 1. | Design for sale in units; |
| 2. | Addresses and names of eligible purchasers; |
| 3. | The estimated value of the building site or unit to be sold to each eligible purchaser (including details about housing units under outsourced rental management); |
| 4. | Details of the following reserved land, and estimated values and methods for disposing of such land: |
| (a) | Units for sale to the general public; |
| (c) | Other appurtenant and welfare facilities, etc.; |
| 5. | A detailed statement of the land or building previously held by each qualified purchaser, and the prices thereof (or the prices as at the date of permission by the head of the relevant Si/Gun, if buildings are demolished under Article 37 (3) before deliberation is conducted pursuant to Article 26) as at the date of receipt of outcomes of deliberation conducted pursuant to Article 26; |
| 6. | The estimated improvement project costs (including rebuilding charges imposed under the Restitution of Excess Rebuilding Gains Act, in cases of a small-scale reconstruction project), and the amount apportioned to the association members and the time for apportionment; |
| 7. | Details of rights previously held by eligible purchasers, except ownership of the land or structures; |
| 8. | A detailed statement of rights of each tenant for compensation, and the amount assessed thereon (limited to at-risk house improvement projects); |
| 9. | Other matters prescribed by Presidential Decree concerning the rights, etc. related to the small-scale housing improvement project. |
| (2) | Where a resolution is required under the main clause of Article 29 (3), the association shall notify its members in writing of the matters referred to in paragraph (1) 3 through 6, 30 days prior to the date of a general meeting. |
| (3) | Management and disposal plans formulated under paragraph (1) shall comply with the following standards: <Amended on Mar. 20, 2018; Aug. 20, 2019; Jun. 9, 2020> |
| 1. | Sites or buildings shall be allocated to the applicants for sale in units in a balanced manner; and shall be utilized rationally, in comprehensive consideration of the areas and status of use of the land or buildings previously held by each qualified purchaser, environments, and other matters; |
| 2. | The surface area of excessively narrow or broad land or buildings shall be increased or reduced to make the size of the sites or buildings become reasonable; |
| 3. | Cash settlements may be paid to persons who have acquired excessively narrow land or buildings or those who have acquired land sub-divided after the designation of a project zone was finalized pursuant to the following: |
| (a) | Designation and public notice of a public implementer under Article 18 or a qualified developer pursuant to Article 19; |
| (b) | Reporting on the organization of a residents' consensus body pursuant to Article 22; |
| (c) | Authorization for the establishment of an association pursuant to Article 23; |
| 4. | Where it is particularly necessary to adjust the surface area of land to prevent disasters or hygiene risks, compensation may be made in lieu of land by expanding excessively narrow land, or by granting co-owning shares in part of a building and the site on which such building stands; |
| 5. | A plan for building sites and units for sale shall be formulated as at the last day of the period for filing an application to purchase a building site or unit under Article 28; |
| 6. | Where one household or one person owns one or more house or parcel of land, one house shall be supplied, and where at least two persons not belonging to the same household jointly own one house or parcel of land, only one house shall be supplied; |
| 7. | Notwithstanding subparagraph 6, housing units may be supplied as follows: |
| (a) | If at least two persons co-own one plot of land and the supply of housing units in such cases is otherwise provided by City/Do ordinance, housing units may be supplied as prescribed by the relevant City/Do ordinance; |
| (b) | Each of the following owners of land or other property may be supplied as many houses as he or she owns, if he or she is: |
| (i) | An owner of land or other property of a small scale housing reconstruction project not located in any overpopulation control area designated under Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act; |
| (ii) | The owners of plots of land or structures, who own houses as accommodation or dormitories for employees (including workers employed as public officials); |
| (iii) | The State, a local government, or the Korea Land and Housing Corporation or any similar entity; |
| (iv) | The transferee of a house owned by a public institution relocating according to the policy and other relevant measures for relocating public institutions to provincial areas and promoting the development of innovation cities under Article 18 of the Special Act on Balanced National Development; |
| (c) | Two houses may be supplied, if the price of such houses does not exceed the price prescribed in paragraph (1) 5 or if the area of such houses does not exceed the residential floor area of the previously used house, and the residential floor area of either of which shall not exceed 60 square meters: Provided, That a house with a residential floor area not exceeding 60 square meters among the houses supplied shall neither be resold (including sale and purchase, donation, and any other act changing any right, but excluding inheritance) nor arranged for resale until three years from the date of the public notice of the transfer under Article 40 (2); |
| (d) | In cases of a housing improvement project in a city block, the number of houses to be supplied shall not exceed three, but a person who owns a multi-unit house may be supplied with the number of houses equal to the value computed by dividing the price prescribed in paragraph (1) 5 by the estimated price of the smallest unit of house among the houses to be sold in units (in such cases, fractions of a value shall be rounded down to the nearest whole number); |
| (e) | Up to three houses may be supplied where a small-scale housing reconstruction project is implemented outside a high speculation area within any overpopulation control area designated under Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act. |
| (4) | Contents of, and the standards for formulating, management and disposal plans and methods of management and disposal under paragraphs (1) through (3) and other necessary matters shall be prescribed by Presidential Decree. |
| (5) | Paragraphs (1) through (4) shall apply mutatis mutandis to management and disposal plans formulated directly by the head of a Si/Gun. |
| Article 34 (Disposal According to Authorized Project Implementation Plans) |
| (1) | The project implementer of a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project shall dispose of or manage sites and buildings created by implementing the project in accordance with the authorized project implementation plan. <Amended on Jul. 20, 2021> |
| (2) | The project implementer of a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project shall supply buildings constructed by implementing the project to the owners of land or other property according to the management and disposal plan authorized under Article 29. <Amended on Jul. 20, 2021> |
| (3) | A project implementer who builds houses within a project zone may separately determine the conditions of, methods and procedures for, recruiting occupants, and the methods, period, and procedures for making payments for housing units (referring to the deposit, intermediate payment, and balance), and the methods and procedures for supplying housing units, etc. within the limits prescribed by Presidential Decree, upon obtaining approval from the head of the relevant Si/Gun, notwithstanding Article 54 of the Housing Act. |
| (4) | Where any land or buildings remain after applications for sale in units have been filed under Article 28, a project implementer may set the remaining land or buildings as reserved land or buildings for the purposes prescribed by the articles of association, etc., or the project implementation plan; or may sell them in units to persons other than association members. In such cases, public announcement of sale in units, procedures for filing applications for sale in units, and other necessary matters, shall be prescribed by Presidential Decree. |
| (5) | Where any publicly-funded private rental housing defined in subparagraph 4 of Article 2 of the Special Act on Private Rental Housing (hereinafter referred to as "publicly-funded private rental housing") is not supplied to persons until the date on which approval of completion or completion of construction works is publicly notified under Article 39, the Minister of Land, Infrastructure and Transport, the head of the relevant Si/Gun, or the Korea Land and Housing Corporation or any similar entity may acquire the relevant rental housing. In such cases, the procedures and methods for acquiring such rental housing, the prices thereof, and other necessary matters, shall be prescribed by Presidential Decree. <Amended on Jan. 16, 2018; Feb. 3, 2022> |
| (6) | Where rental houses are built by implementing a small-scale housing improvement project, the project implementer may separately determine standards for lease terms and conditions, such as tenant eligibility requirements, method of selecting tenants, rental security deposits, and rents, and standards for preferential sale to non-homeowner households, within the limits prescribed by Presidential Decree after obtaining approval from the head of the relevant Si/Gun, notwithstanding Articles 42 and 44 of the Special Act on Private Rental Housing and Articles 48, 49, and 50-3 of the Special Act on Public Housing. |
| (7) | A project implementer may supply the housing units remaining after being supplied to eligible persons under paragraphs (2) through (6) to those other than the eligible persons under paragraphs (2) through (6). |
| (8) | Article 54 of the Housing Act shall apply mutatis mutandis to the method, procedure, etc. for supplying houses under paragraphs (7): Provided, That a project implementer may solicit prospective occupants, even before a court judgment in favor of the project implementer becomes final and conclusive, notwithstanding Article 54 of the Housing Act, if the project implementer deposits compensation money for losses in the competent court after winning a lawsuit seeking sale of property under Article 35 to indemnify occupants from losses and secures the structures for sale; but the project implementer shall acquire ownership in the building sites for the housing construction project before filing an application for approval of completion of the project under Article 39. |
SECTION 4 Measures for Implementing Projects
| Article 35 (Request for Sale) |
| (1) | The project implementer of a housing improvement project in a city block (excluding where land, goods or rights may be expropriated or used under Article 35-2) or a small-scale reconstruction project (excluding where the owners of land or other property implement such project) shall demand in writing each of the following persons to reply as to whether he or she consents to establish an association or to designate a project implementer within 30 days from the date of receipt of outcomes of deliberation conducted pursuant to Article 26: <Amended on Jul. 20, 2021> |
| 1. | A person who has not consented to establish an association under Article 23 (1), (2), (4), or (5); |
| 2. | A person who has not consented to designate the head of the relevant Si/Gun, the Land and Housing Corporation or similar entity, or a qualified developer as a project implementer under Article 18 (1) or 19 (1). |
| (2) | The project implementer of an autonomous housing improvement project conducted in a management area pursuant to Article 22 (3) shall demand in writing a person who does not consent to organize the residents' consensus body to reply as to whether he or she consents to organize the residents' consensus body. <Newly Inserted on Jul. 20, 2021> |
| (3) | An owner of land or other property in receipt of a demand under paragraph (1) or (2) shall reply thereto within 60 days from the date of receipt thereof. <Amended on Jul. 20, 2021> |
| (4) | An owner of land or other property who has not replied within the period prescribed in paragraph (3) shall be deemed to have replied notifying his or her intent not to consent to organize a residents' consensus body, establish an association or designate a project implementer. <Amended on Jul. 20, 2021> |
| (5) | A project implementer may request the owners of land or other property, building owners or land owners who have replied notifying their intent not to consent to organize a residents' consensus body, establish an association or designate a project implementer, to transfer their ownership and other rights to the buildings or land, within 60 days from the expiration of the period prescribed in paragraph (3). <Amended on Jul. 20, 2021> |
| Article 35-2 (Expropriation or Use of Land) |
| (1) | Where necessary to implement a small-scale redevelopment project or a housing improvement project in a city block (limited to where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity designated as a public implementer pursuant to Article 18 (1) implements such project in a management area), a project implementer may expropriate or use land, goods or rights prescribed in Article 3 of the Act on Acquisition of and Compensation for Land for Public Works Projects. |
| (2) | Except as otherwise provided in this Act, the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply to the expropriation or use of land, goods or rights under paragraph (1) and compensation for loss: Provided, That standards and procedures for compensation for loss, such as the formulation of relocation measures in implementing a project, may be prescribed by Presidential Decree. |
| (3) | Where public notice is given with regard to authorization for a project implementation plan that includes the details of land, goods or rights to be expropriated or used under Article 30 (1) 10-2, project approval or public notice thereof shall be deemed given under Articles 20 (1) and 22 of the Act on Acquisition of and Compensation for Land for Public Works Projects. |
| (4) | An application for adjudication on expropriation or use under paragraph (1) shall be filed within the project implementation period determined at the time of authorization for a project implementation plan (including authorization for an amendment to a project implementation plan), notwithstanding Articles 23 (1) and 28 (1) of the Act on Acquisition of and Compensation for Land for Public Works Projects. |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 36 (Measures for Persons Failing to File Application to Purchase Building Sites or Units) |
| (1) | The project implementer of a housing improvement project in a city block, a small-scale reconstruction project, or a small-scale redevelopment project shall consult with each of the following persons on the compensation for any loss arising in connection with the land, buildings or other rights within 90 days from the date the project implementation plan is authorized and publicly notified pursuant to Article 29: Provided, That the project implementer may commence the consultation from the day following the date of the expiration of the filing period for applications for sale in units: <Amended on Feb. 3, 2022; Apr. 18, 2023> |
| 1. | A person who has not filed an application for sale in units; |
| 2. | A person who withdrew his or her application to purchase a building site or unit before the end of the period for filing an application to purchase a building site or unit; |
| 3. | A person excluded from qualified purchasers according to the management and disposal plan authorized under Article 29. |
| (2) | Where no agreement is reached through consultation under paragraph (1), the project implementer shall apply for adjudication on expropriation or file a lawsuit requesting sale under Article 35 within 60 days after the expiration of the period prescribed in paragraph (1). |
| (3) | Where a project implementer applies for adjudication on expropriation or files a lawsuit requesting sale after the lapse of the period prescribed in paragraph (2), he or she shall pay interest to the owners of the relevant land or other property, for the delayed days, as prescribed by Presidential Decree. |
| Article 37 (Discontinuance of Exercise of Usufruct on Structures and Demolition of Structures) |
| (1) | After a project implementation plan is authorized, no title holder, including an owner, a person with superficies, a person with a right to lease on deposit basis, or a leaseholder of the previously used land or building, shall use or benefit from such land or building until public notice of transfer is given pursuant to Article 40: Provided, That this shall not apply in any of the following cases: |
| 1. | Where consent is obtained from the relevant project implementer; |
| 2. | Where the compensation process required under the Act on Acquisition of and Compensation for Land for Public Works Projects is not completed. |
| (2) | A project implementer shall demolish existing buildings after obtaining authorization for a management and disposal plan under Article 29. |
| (3) | Notwithstanding paragraph (2), a project implementer may demolish existing buildings after obtaining consent from the owners of the existing buildings and permission from the head of the relevant Si/Gun in any of the following circumstances. In such cases, the demolition of such buildings does not affect any rights and obligations of the owners of land or other property: |
| 1. | Where an accident is likely to occur, such as collapse of existing buildings prescribed in the related statutes, including the Framework Act on the Management of Disasters and Safety, the Housing Act, and the Building Act; |
| 2. | Where crimes are likely to occur due to clustering of vacant and abandoned houses. |
| (4) | Where a project implementer demolishes existing buildings under paragraph (2), the head of the relevant Si/Gun may restrict the demolition of buildings at any time prescribed as follows: <Amended on Feb. 14, 2023> |
| 1. | A period between before sunrise and after sunset; |
| 2. | When the Administrator of the Korea Meteorological Administration issues a severe weather alert under Article 13-2 of the Weather Act because a serious disaster is likely to occur in the relevant area due to a heavy rain, heavy snow, storm surge, seismic sea wave, typhoon, strong wind, wind wave, cold wave or other event; |
| 3. | When a disaster specified in Article 3 of the Framework Act on the Management of Disasters and Safety occurs; |
| 4. | The time the head of the relevant Si/Gun deems equivalent to that referred to in subparagraphs 1 through 3. |
| Article 38 (Termination of Contracts on Surface Rights) |
| (1) | Where it becomes impossible to achieve the objective of establishing the superficies, right to lease on a deposit basis, or right to lease due to the implementation of a small-scale housing improvement project, any holders of said rights may terminate the relevant contract. |
| (2) | Any right to claim the return of the key money for lease on deposit basis, deposit money, and other money for a contract, which are held by a person entitled to terminate a contract under paragraph (1), may be exercised against the project implementer. |
| (3) | Any project implementer who paid money in response to the exercise of a right to claim the return of such money under paragraph (2) may claim reimbursement of the relevant amount from the relevant owners of a plot of land or structure. |
| (4) | Where no reimbursement is made pursuant to paragraph (3), the project implementer may seize the site or buildings to be vested in the owners of relevant land or other property. In such cases, the seized rights shall have the same effect as a mortgage. |
| (5) | Articles 280, 281 and 312 (2) of the Civil Act, Article 4 (1) of the Housing Lease Protection Act, and Article 9 (1) of the Commercial Building Lease Protection Act, shall not apply to the periods of contracts for establishing the superficies or the right to lease on a deposit basis, or the periods of lease contracts, where the management and disposal plan has been authorized pursuant to Article 29. |
| Article 38-2 (Disposal of Buildings Whose Owners Are Unascertainable) |
| (1) | Where it is highly impracticable to ascertain the whereabouts of the owner of any land or building as at the following dates, a project implementer shall make a public announcement thereof at least twice via two or more daily newspapers distributed nationwide, and may implement a project after depositing in the competent court the amount equivalent to the appraised amount of such owner's land or building when at least 30 days elapse from the date of such public announcement: |
| 1. | Where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity implements the project pursuant to Article 18 (1), the date of public notice given under Article 18 (2); |
| 2. | Where a qualified developer is designated as a project implementer pursuant to Article 19 (1), the date of public notice given under Article 19 (2); |
| 3. | Where a small-scale redevelopment project or an autonomous housing improvement project is implemented pursuant to Article 22 (2) or (3), the date of filing a report on the organization of a residents’ consensus body under Article 22 (5); |
| 4. | Where an association is a project implementer pursuant to Article 23 (1), (2) or (4), the date of authorizing the establishment of the association. |
| (2) | Where an association implements a housing improvement project in a city block, a small-scale reconstruction project or a small-scale redevelopment project, land or buildings co-owned by all members of the association as at the date of authorizing its establishment shall be deemed land or buildings owned by the association. |
| (3) | Matters regarding disposal of land or buildings deemed owned by an association under paragraph (2) shall be specified in the relevant management and disposal plan prescribed in Article 33 (1). |
| (4) | Article 56 (2) 1 shall apply mutatis mutandis to the appraisal of land or buildings under paragraph (1). |
[This Article Newly Inserted on Jul. 20, 2021]
SECTION 5 Measures Following Completion of Construction Works
| Article 39 (Public Notice of Approval of Completion and Completion of Construction Works) |
| (1) | Upon completing construction works for a small-scale housing improvement project, a project implementer, other than the head of a Si/Gun, shall obtain approval of completion from the head of the relevant Si/Gun. |
| (2) | Upon receipt of an application for approval of completion under paragraph (1), the head of a Si/Gun shall perform a final inspection without delay. In such cases, the head of the Si/Gun may entrust the final inspection to any related administrative agency, Government-invested institution, research institute, or any other specialized agency or organization, if necessary to efficiently conduct the final inspection. |
| (3) | The head of a Si/Gun shall grant approval of completion and publicly notify such fact in the public gazette of the relevant local government, if a small-scale housing improvement project is determined complete as specified in the authorized project implementation plan based on the findings from the final inspection conducted pursuant to paragraph (2). |
| (4) | Upon completing construction works for a small-scale housing improvement project directly implemented by the head of a Si/Gun, the head of the Si/Gun shall publicly notify such completion in the public gazette of the relevant local government. |
| (5) | Where a completed building satisfies the standards prescribed by Presidential Decree, such as where there is no hindrance in using the completed building even before approval of completion is granted under paragraph (1), the head of the relevant Si/Gun may permit the relevant project implementer to allow the prospective occupants to use the completed building: Provided, That where the head of a Si/Gun is a project implementer, he or she may allow the prospective occupants to use the completed building without permission. |
| (6) | Where completion of construction works is publicly notified pursuant to paragraphs (3) and (4), matters on which the head of a Si/Gun has consulted with the head of the relevant administrative agencies concerning the final inspection or similar process according to authorization, permission, etc. deemed granted under Article 55 shall be deemed to have undergone the relevant final inspection or similar process. |
| Article 40 (Public Notice of Transfer and Restrictions on Change in Rights) |
| (1) | Where public notice is given under Article 39 (3) or (4), the project implementer shall conduct boundary surveys (excluding a project that supplies less than 30 households, out of small-scale housing improvement projects prescribed in Article 2 (1) 3) without delay; take the procedure for dividing land; notify each qualifier purchaser of matters prescribed in the project implementation plan; and transfer the ownership of each site or building to each person: Provided, That where it is necessary for efficiently implementing a small-scale housing improvement project, the project implementer may obtain approval of completion for a completed site or building even before fully completing construction works for the small-scale housing improvement project and may transfer the ownership of the completed site or building to each qualified purchaser. <Amended on Apr. 18, 2023> |
| (2) | To transfer the ownership of a site or building under paragraph (1), the project implementer shall publicly notify the details thereof in the public gazette of the relevant local government; and shall report the same to the head of the relevant Si/Gun. In such cases, a person entitled to a site or building shall acquire the ownership of the site or building on the day following the date of public notice. |
| (3) | When public notice of transfer is given pursuant to paragraph (2), the project implementer shall entrust or apply for registration of a site or building to the competent district court or registry office without delay. In such cases, matters necessary for such registration shall be prescribed by the Supreme Court Regulations. |
| (4) | No mortgage or other right shall be registered from the date of public notice of transfer under paragraph (2) to the time of registration under paragraph (3), with regard to a small-scale housing improvement project. |
| (5) | Land or a building sold to an owner of land or other property, among land or buildings acquired under paragraph (2) following the implementation of a small-scale housing improvement project, shall be deemed replotted under Article 40 of the Urban Development Act. <Newly Inserted on Apr. 18, 2023> |
| Article 41 (Settlement Money) |
| (1) | Where there is a difference between the price of the land or building previously owned by a person who has obtained a site or a unit of a building and the price of the site or the unit of the building, the project implementer shall either collect or pay the equivalent to such difference (hereinafter referred to as "settlement money") from, or to that person, after public notice of transfer is given under Article 40 (2). |
| (2) | Notwithstanding paragraph (1), a project implementer may collect or pay settlement money in installments for a specific period from the time the management and disposal plan is authorized until the date public notice of transfer is given under Article 40 (2), if collection and payment in installments is prescribed in the articles of association, etc. or separately determined by a resolution passed at a general meeting. |
| (3) | Where a project implementer appraises the land or building previously owned by a person and the site or the unit of a building sold to such person for the purpose of applying paragraphs (1) and (2), he or she shall consider the size, location, purpose, the status of use of the land or building, the improvement project cost, etc. <Newly Inserted on Feb. 3, 2022> |
| (4) | Any title holder who has established a mortgage on any land or building located within a project zone, may exercise the mortgage against the settlement money to be paid to the owner of the land or building on which such mortgage has been established, by foreclosing before the settlement money is paid. <Amended on Feb. 3, 2022> |
| (5) | Article 56 (2) 1 shall apply mutatis mutandis to the methods of appraisal under paragraph (3). <Newly Inserted on Feb. 3, 2022> |
SECTION 6 Bearing of Costs
| Article 42 (Principles of Bearing Costs and Funding) |
| (1) | Except as otherwise provided in this Act or any other statute or regulation, the improvement project cost shall be borne by each project implementer. |
| (2) | The head of a Si/Gun may fully or partially bear the cost incurred in constructing the following facilities through a small-scale housing improvement project implemented by a project implementer, other than the head of a Si/Gun: <Amended on Jul. 20, 2021> |
| 1. | Major fundamental infrastructure and joint-use facilities prescribed by Presidential Decree, among urban/Gun planning facilities; |
| 2. | Temporary accommodation referred to in Article 43 (4). |
| (3) | A project implementer may impose on, and collect from, the owners of land or other property as a charge, the difference between the cost it bears under paragraph (1) and the profit accrued in the course of implementing the relevant small-scale housing improvement project. |
| (4) | A project implementer may impose and collect a late-payment fee on and from any owner of land or other property who has neglected to pay a charge under paragraph (3). <Amended on Aug. 20, 2019; Jun. 9, 2020> |
| Article 43 (Construction of Fundamental Infrastructure and Vesting of Land) |
| (1) | If it is deemed necessary to expand fundamental infrastructure or joint-use facilities in implementing a small-scale housing improvement project, the head of the relevant Si/Gun may construct them directly or require the project implementer to construct them. |
| (2) | Where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity has constructed new fundamental infrastructure or replacement for existing fundamental infrastructure in the course of implementing a small-scale housing improvement project, the ownership of the existing fundamental infrastructure shall vest in the project implementer without compensation, while the ownership of the newly constructed fundamental infrastructure shall vest in the State or the local government responsible for managing it, without compensation, notwithstanding the State Property Act or the Public Property and Commodity Management Act. <Amended on Jul. 20, 2021> |
| (3) | The ownership of fundamental infrastructure newly constructed by a project implementer, other than the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity, in the course of implementing a small-scale housing improvement project shall vest in the State or the local government responsible for managing it, while the ownership of fundamental infrastructure owned by the State or a local government, which is to be disused upon implementing a small-scale housing improvement project, shall be transferred to a project implementer without compensation within the limit corresponding to the costs incurred by the project implementer in newly constructing fundamental infrastructure. In such cases, if there is a difference between the value of the existing fundamental infrastructure to be disused and the costs incurred in newly constructing fundamental infrastructure, the project implementer shall settle the difference with the State or a local government. <Newly Inserted on Jul. 20, 2021> |
| (4) | Where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity implements a small-scale housing improvement project, he or she or it may preferentially supply public rental housing owned by him or her or it, to the owners or tenants (limited to those actually residing in the project zone) of houses to be demolished in the course of implementing the project in accordance with the methods and procedures prescribed by Presidential Decree, so that they use such housing as temporary accommodation, notwithstanding Article 54 of the Housing Act. <Amended on Jul. 20, 2021> |
[Title Amended on Jul. 27, 2021]
SECTION 7 Small-Scale Housing Improvement Management Plans
| Article 43-2 (Formulation of Small-Scale Housing Improvement Management Plans) |
| (1) | The head of a Si/Gun may formulate a small-scale housing improvement management plan (hereinafter referred to as "management plan") for an area that falls under any of the following cases and meets the requirements prescribed by Presidential Decree (including the formulation of an amended management plan; hereafter in this Article and Articles 43-4 (1) and 50 (2), the same shall apply) and may file an application for approval of such plan with the competent Mayor/Do Governor; in such cases, residents (including interested parties) or the Korea Land and Housing Corporation or any similar entity may suggest the formulation of a management plan to the head of a Si/Gun, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Apr. 18, 2023> |
| 1. | Where it is necessary to implement a small-scale housing improvement project for worn-out and substandard structures in an area where it is impracticable to conduct development over a wide area as detached houses and multi-family housing that constitute worn-out and substandard structures, and newly constructed buildings are mixed; |
| 2. | Where it is necessary to promptly pursue a small-scale housing improvement project because a safety accident or crime is highly likely to occur in an unoccupied house area; |
| 3. | Where it is necessary to promptly pursue a small-scale housing improvement project promptly because a risk is likely to occur in case of a disaster. |
| (2) | Where the head of a Si/Gun intends to formulate a management plan pursuant to paragraph (1), he or she shall gather consensus from residents by making it available for inspection for at least 14 days and shall reflect it in the management plan, if such consensus is found reasonable: Provided, That any minor matter prescribed by Presidential Decree may be amended without making it available for inspection by residents. <Newly Inserted on Apr. 18, 2023> |
| (3) | To grant approval of a management plan under paragraph (1), a Mayor/Do Governor shall refer it to the relevant local urban planning committee or the relevant local urban regeneration committee established under Article 8 of the Special Act on Promotion of and Support for Urban Regeneration for deliberation (referring to integrated deliberation where deliberation shall be conducted by at least two committees prescribed in the subparagraphs of Article 27 (3)): Provided, That any minor matter prescribed by Presidential Decree may be amended without referring it to a committee prescribed in the subparagraphs of Article 27 (3) for deliberation. <Amended on Apr. 18, 2023> |
| (4) | Upon approving a management plan, a Mayor/Do Governor shall publicly notify it in the public gazette of the relevant local government without delay and shall report it to the Minister of Land, Infrastructure and Transport. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings regarding the management area. <Amended on Apr. 18, 2023> |
| (5) | Standards, procedures, and methods necessary to formulate and approve a management plan shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Apr. 18, 2023> |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 43-3 (Details of Small-Scale Housing Improvement Management Plans) |
A management plan shall include the following: Provided, That the matters under subparagraphs 6 through 9 shall be included only where necessary: <Amended on Apr. 18, 2023>
| 1. | The size of a management area and the direction of improvement; |
| 2. | A land utilization plan, a plan to construct fundamental infrastructure and joint-use facilities and a transport plan; |
| 3. | A plan for promoting the relevant small-scale housing improvement project; |
| 4. | Deleted; <Apr. 18, 2023> |
| 5. | A plan for the density of buildings, including building-to-land ratios and floor area ratios; |
| 6. | A plan for supplying and acquiring rental housing under Article 43-5 or 49; |
| 7. | A plan for designating or altering special-purpose districts or areas; |
| 8. | A plan for special building zones under Article 69 of the Building Act and special street zones under Article 77-2 of that Act; |
| 9. | Other matters prescribed by Presidential Decree. |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 43-4 (Special Cases concerning Small-Scale Housing Improvement Management Areas) |
| (1) | Where the formulation of a management plan is approved and publicly notified under Article 43-2 (4), the relevant management area and management plan shall be deemed a district-unit planning zone and district-unit plan determined and publicly notified under Article 50 of the National Land Planning and Utilization Act with regard to matters that fall under any of the subparagraphs of Article 52 (1) of that Act. <Amended on Apr. 18, 2023> |
| (2) | Where the matter referred to in subparagraph 7 of Article 43-3 is included in a management plan, the management area shall be deemed determined and publicly notified as an area prescribed by Presidential Decree, among the areas determined by subdividing residential areas pursuant to Article 36 (1) 1 (a) and (2) of the National Land Planning and Utilization Act, from the date the management plan is publicly notified. |
| (3) | Where joint-use facilities are constructed in part of a building or site when a small-scale housing improvement project is implemented in a management area, a floor area ratio may be set within the limit calculated by adding the floor area ratio of the joint-use facilities to the floor area ratio applied to the relevant area pursuant to Article 78 of the National Land Planning and Utilization Act, notwithstanding Article 48 (2). |
| (4) | Article 28-2 shall apply mutatis mutandis to the right to purchase a building unit in a management area when a small-scale housing improvement project is implemented. In such cases, "public notice under Article 18 (2), 19 (2), 22 (10), or 23 (9)" shall be construed as "public notice of a management plan under Article 43-2 (4)", the "head of a Si/Gun" as the "Mayor/Do Governor", and "public notice of the designation of a project implementer, the organization of a residents' consensus body, or the authorization to establish an association" as "approval and public notice of a management plan", respectively. <Amended on Apr. 18, 2023> |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 43-5 (Supply and Acquisition of Rental Housing in Management Areas) |
| (1) | Where a special-purpose area is altered under Article 43-4 (2) as a small-scale housing improvement project is implemented in a management area, a project implementer shall construct rental housing in an area equivalent to the ratio which is prescribed by City/Do ordinance and does not exceeds 50/100 of the floor area ratio calculated by subtracting the floor area ratio prescribed by ordinance of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Special Self-Governing Province, or a Si/Gun (hereinafter referred to as "Si/Gun ordinance") in the previous special-purpose area from the floor area ratio in the changed special-purpose area and shall supply such rental housing to a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity. In such cases, the project implementer shall, in advance, have a consultation on matters regarding housing with the Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity, before a construction design is finalized, and shall reflect such matters in the relevant project implementation plan. <Amended on Apr. 18, 2023> |
| (2) | Where the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity jointly or separately implements a small-scale housing improvement project under Article 17 (3) or 18 (1) in a management area, the relevant project implementer shall build rental houses at a floor area ratio of at least the percentage prescribed by City/Do ordinance, within the scope of at least 15/100 but not exceeding 30/100 of the floor area ratio calculated by subtracting the floor area ratio of the previous special-purpose area from the floor area ratio of the changed special-purpose area, notwithstanding paragraph (1). <Amended on Apr. 18, 2023> |
| (3) | The price of rental housing supplied under paragraph (1) shall be determined based on the standard construction cost of publicly-constructed rental housing publicly notified by the Minister of Land, Infrastructure and Transport under Article 50-4 of the Special Act on Public Housing, and the land appurtenant to such rental housing shall be deemed donated to a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity. |
| (4) | Any housing acquired pursuant to paragraphs (1) through (3) shall be utilized as rental housing prescribed by Presidential Decree. In such cases, matters necessary for procedures, methods, etc. for acquisition of housing shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 43-6 (Special Cases concerning Revocation of Small-Scale Housing Improvement Management Areas) |
| (1) | A Mayor/Do Governor may revoke a management area after deliberation under Article 43-2 (3), in any of the following cases: |
| 1. | Where it is deemed that the objectives of the formulation of the relevant management plan are achieved, considering the progress of the relevant small-scale housing improvement project; |
| 2. | Where it is deemed that the objectives of the formulation of the relevant management plan are not attainable, including where there is no designation of a project implementer under Article 18 or 19, no reporting on the organization of a residents' consensus body under Article 22, or no application for authorization to establish an association under Article 23, within three years from the date the management plan is publicly notified pursuant to Article 43-2 (4); |
| 3. | Where the head of a Si/Gun requests the revocation of the management area under paragraph (2). |
| (2) | In cases falling under paragraph (1) 1 or 2, the head of a Si/Gun may request the competent Mayor/Do Governor to revoke a management area. |
| (3) | A Mayor/Do Governor who intends to revoke a management area pursuant to paragraph (1) shall make the details thereof available to local residents for inspection for at least 14 days before deliberation thereon under Article 43-2 (3). |
| (4) | Where a management area is revoked under paragraphs (1) through (3), the determination of the relevant management plan shall be deemed to cease to have effect. |
| (5) | Where a management area is revoked under paragraphs (1) through (3), the previous designation, authorization, permission, approval, report, registration, consultation, consent, examination, etc. under this Act or relevant statutes (hereafter in this Article referred to as "authorization, etc.") shall be deemed effective for a project zone for which a majority of the owners of land or other property who have consented to the organization of a residents' consensus body, the establishment of an association, or the designation of a project implementer, wish to continue the implementation of the relevant small-scale housing improvement project. In such cases, the head of the relevant Si/Gun or the relevant project implementer shall change the previous authorization, etc. |
| (6) | Upon revoking a management area, a Mayor/Do Governor shall publicly notify such revocation in the public gazette of the relevant local government without delay and shall report it to the Minister of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Apr. 18, 2023]
CHAPTER IV SUPPORT TO FACILITATE PROJECTS
| Article 44 (Subsidies and Loans) |
| (1) | The State or a Mayor/Do Governor may provide subsidies or loans to help cover all or part of the expenses incurred in constructing fundamental infrastructure or joint-use facilities established by the head of a Si/Gun/autonomous Gu or the Korea Land and Housing Corporation or any similar entity in accordance with the management plan approved and publicly notified under Article 43-2 (4). <Amended on Apr. 18, 2023> |
| (2) | A Mayor/Do Governor or the head of a Si/Gun/autonomous Gu may provide subsidies or loans, make contributions, or arrange loans to cover all or part of the expenses incurred in an unoccupied house improvement project or a small-scale housing improvement project implemented by a project implementer other than the head of a Si/Gun. |
| (3) | A Mayor/Do Governor may provide subsidies or loans to cover all or part of any of the following expenses incurred by the head of a Si/Gun/autonomous Gu or the Korea Land and Housing Corporation or any similar entity: |
| 1. | Expenses incurred in formulating unoccupied house improvement plans under Article 4; |
| 2. | Expenses incurred in conducting fact-finding surveys under Article 5; |
| 3. | Expenses incurred in implementing unoccupied house improvement projects under Article 9; |
| 4. | Expenses incurred in constructing fundamental infrastructure or joint-use facilities under Article 43. |
[This Article Newly Inserted on Jul. 20, 2021]
| Article 45 (Reduction or Exemption of User Fees on Joint-Use Facilities) |
| (1) | Where the head of a local government permits the use of, or leases, joint-use facilities in a project zone pursuant to Article 20 or 28 of the Public Property and Commodity Management Act for public interests, such as invigorating communities, he or she may reduce or exempt user fees on such facilities, notwithstanding Articles 22 and 32 of that Act. |
| (2) | Criteria for public interests, facilities eligible for reduction or exemption of user fees under paragraph (1), and other necessary matters, shall be prescribed by City/Do ordinance. |
| Article 46 (Special Cases concerning Unoccupied House Improvement Projects) |
Where a project implementer of an unoccupied house improvement project renovates an unoccupied house or changes the use thereof within an unoccupied house area, the project implementer may be eligible for relaxed application of the following standards after deliberation by the local building committee within the scope of the existing unoccupied house even if the site on which the unoccupied house stands or the unoccupied house ceases to comply with any statute or regulation due to the enactment of or amendment to a relevant statute or regulation or any other reason prescribed by Presidential Decree: <Amended on Apr. 23, 2019>
| 1. | Standards for landscaping of building sites under Article 42 of the Building Act; |
| 2. | Designation of building lines under Article 46 of the Building Act; |
| 3. | Standards for determining the building-to-land ratios under Article 55 of the Building Act; |
| 4. | Standards for determining the building-to-land ratios under Article 56 of the Building Act; |
| 5. | Standards for vacant lots within a building site under Article 58 of the Building Act; |
| 6. | Limits on heights of buildings under Articles 60 and 61 of the Building Act; |
| 7. | Distance between buildings and boundary lines under Article 242 of the Civil Act. |
| Article 47 (Special Cases concerning Restrictions on Activities in Improvement Zones) |
Notwithstanding Article 19 of the Act on the Act on the Improvement of Urban Areas and Residential Environments, a project implementer may implement an unoccupied house improvement project or a small-scale housing improvement project within any improvement zone in which a residential environment improvement project is implemented as prescribed in Article 23 (1) 1 of that Act.
| Article 48 (Special Provisions concerning Relaxation of Building Regulations) |
| (1) | A project implementer is eligible for relaxed application of any of the following standards or restrictions for buildings to be constructed by implementing an autonomous housing improvement project (limited to where such project is implemented in accordance with a neighborhood regeneration revitalization plan defined in Article 2 (1) 6 (b) of the Special Act on Promotion of and Support for Urban Regeneration or such project is implemented in an unoccupied house area or a management area, or other cases prescribed by City/Do ordinance), a housing improvement project in a city block, a small-scale reconstruction project, a small-scale redevelopment project, or an at-risk house improvement project, within the limits prescribed by Presidential Decree, after deliberation by the relevant local building committee: <Amended on Apr. 23, 2019; Jul. 20, 2021; Oct. 19, 2021> |
| 1. | Standards for landscaping of building sites under Article 42 of the Building Act; |
| 2. | Standards for determining building-to-land ratios under Article 55 of the Building Act (limited to city blocks located on slopes); |
| 3. | Standards for vacant lots within building sites under Article 58 of the Building Act; |
| 4. | Limits on heights of buildings under Articles 60 and 61 of the Building Act; |
| 5. | Standards for installing appurtenant facilities and welfare facilities under Article 35 (1) 3 and 4 of the Housing Act; |
| 6. | Except as provided in subparagraphs 1 through 5, matters prescribed by Presidential Decree for smoothly implementing the project. |
| (2) | Where a project implementer installs any of the following facilities in part of a building or site within the zone where a small-scale housing improvement project is implemented, he or she may be eligible to be subject to the floor area ratio prescribed by City/Do ordinance within the limit calculated within the aggregate of the floor area ratio applicable to the relevant area under Article 78 of the National Land Planning and Utilization Act and the floor area ratio applicable to those facilities; in such cases, matters concerning the method, etc. of calculating the floor area ratio shall be prescribed by Presidential Decree: <Amended on Apr. 23, 2019> |
| 1. | Fundamental infrastructure; |
| 3. | Common facilities prescribed by Presidential Decree among welfare facilities defined in subparagraph 14 of Article 2 of the Housing Act. |
| (3) | Where a project implementer secures a right to use a parking lot defined in subparagraph 1 of Article 2 of the Parking Lot Act (hereinafter referred to as "right to use a parking lot") regarding a building to be constructed by implementing an unoccupied house improvement project or a small-scale housing improvement project to the extent prescribed by Presidential Decree, the head of a Si/Gun may relax the standards for installation of parking lots to the extent corresponding thereto. <Amended on Feb. 3, 2022> |
| (4) | Methods and procedures for securing a right to use a parking lot under paragraph (3), standards for calculating costs, standards for reduction, and other necessary matters, shall be prescribed by City/Do ordinance. |
| (5) | Where a project implementer implements a small-scale housing improvement project in a management area, it may integrate adjoining project zones into one project zone, as prescribed by Presidential Decree. In such cases, the ratio of public rental housing or publicly-funded private rental housing (referring to the ratio of the total floor area of rental housing to the total floor area of the buildings or the ratio of the number of rental housing households to the total number of households; hereafter in Article 49, the same shall apply) shall be at least the ratio prescribed by City/Do ordinance to the extent of less than 20/100. <Newly Inserted on Jul. 20, 2021; Apr. 18, 2023> |
| (6) | Where adjacent project zones are integrated into one project zone to implement a core project under paragraph (5), the ratio of public rental housing units under Article 49 (1) need not apply to each of the relevant project zones but may apply to all or part of the entire integrated project zone. <Newly Inserted on Jul. 20, 2021> |
| Article 49 (Special Cases concerning Construction of Rental Housing) |
| (1) | Where a project implementer constructs the following rental housing by implementing an unoccupied house improvement project or a small-scale housing improvement project, the project implementer may construct it up to a maximum floor area ratio prescribed in the following subparagraphs, notwithstanding the floor area ratios prescribed by Si/Gun ordinance in accordance with Article 78 of the National Land Planning and Utilization Act: <Amended on Jan. 16, 2018; Apr. 23, 2019; Aug. 18, 2020; Jul. 20, 2021; Oct. 19, 2021; Feb. 3, 2022; Apr. 18, 2023> |
| 1. | Where public rental housing or publicly-funded private rental housing is constructed in such a way that the ratio of rental housing units is at least the ratio prescribed by City/Do ordinance to the extent of at least 20/100: The maximum floor area ratio under Article 78 of the National Land Planning and Utilization Act and relevant statutes or regulations (hereinafter referred to as "statutory maximum floor area ratio"); |
| 2. | Where public rental housing is constructed in such a way that the ratio of rental housing units is between the ranges of at least 10/100 and less than 20/100: A maximum floor area ratio calculated by the method prescribed by City/Do ordinance in proportion to the ratio of rental housing. |
| (2) | Where a project implementer constructs public rental housing in such a way that the ratio of rental housing units is at least 10/100 and thereby becomes eligible for the relaxed floor area ratio requirement under paragraph (1), the project implementer shall supply the public rental housing to a real estate investment trust in which the Minister of Land, Infrastructure and Transport, the Mayor/Do Governor, the head of the Si/Gun, the Korea Land and Housing Corporation or any similar entity, or the Housing and Urban Fund invests in excess of 50/100 of its total equity pursuant to the Real Estate Investment Company Act (hereafter in this Article referred to as "acquirer"). <Newly Inserted on Apr. 23, 2019; Aug. 18, 2020; Feb. 3, 2022; Apr. 18, 2023> |
| (3) | A project implementer shall, in advance, have a consultation on matters regarding rental housing, such as the area and number of households, with the acquirer before a construction design is finalized and shall reflect such matters in the relevant project implementation plan, in any of the following cases: <Newly Inserted on Apr. 23, 2019; Feb. 3, 2022> |
| 1. | Where constructing public rental housing; |
| 2. | Where providing public rental housing pursuant to paragraph (2). |
| (4) | The acquisition price of public rental housing under paragraph (2) shall be calculated based on the sum of the construction costs and the price of the appurtenant land, but may be adjusted by mutual agreement between the project implementer and the acquirer, based on the relevant project conditions, etc. <Newly Inserted on Apr. 23, 2019; Jun. 9, 2020; Feb. 3, 2022> |
| (5) | Matters concerning the methods and procedures for supplying public rental housing under paragraph (2), the calculation of construction costs under paragraph (4), and the price, etc. of appurtenant land shall be prescribed by Presidential Decree. <Newly Inserted on Apr. 23, 2019; Feb. 3, 2022> |
| (6) | Where a project implementer constructs rental housing under Article 51 (1) as multi-household housing or multi-unit housing, the head of the relevant Si/Gun may apply the standards prescribed by Presidential Decree regarding the standards for the installation of parking lots, notwithstanding Article 35 of the Housing Act. <Amended on Apr. 23, 2019; Feb. 3, 2022> |
| (7) | Deleted. <Apr. 18, 2023> |
| (8) | Deleted. <Apr. 18, 2023> |
| (9) | Deleted. <Apr. 18, 2023> |
| (10) | Deleted. <Apr. 18, 2023> |
| Article 49-2 (Special Cases concerning Floor Area Ratios for Small-Scale Redevelopment Projects and Small-Scale Reconstruction Projects) |
| (1) | A project zone for a small-scale redevelopment project implemented in a station's sphere of influence under Article 2 (1) 3 (d) may be deemed determined and publicly notified as an area prescribed by Presidential Decree, among areas determined by subdividing residential areas under Article 36 (1) 1 (a) and (2) of the National Land Planning and Utilization Act, from the date when authorization for the relevant project implementation plan is obtained under Article 29 and the floor area ratio in such project zone may be determined to be up to the statutory maximum floor area ratio, and In such cases, integrated deliberation shall be conducted pursuant to Article 27: Provided, That this shall not apply where the head of the relevant Si/Gun publicly notifies the designation of a project implementer, the organization of a residents' consensus body, or authorization to establish an association to the effect that part of the relevant project zone remains intact as the previous special-purpose area in consideration of regional characteristics and other factors, as prescribed by City/Do ordinance. <Amended on Oct. 19, 2021; Apr. 18, 2023> |
| (2) | If the floor area ratio under paragraph (1) exceeds the floor area ratio prescribed by Si/Gun ordinance under Article 78 of the National Land Planning and Utilization Act (referring to the floor area ratio of the previous special-purpose area, if the special-purpose area is changed), a project implementer who conducts a small-scale redevelopment project shall construct buildings such as houses prescribed by Presidential Decree in an area equivalent to the ratio prescribed by City/Do ordinance to the extent not exceeding 50/100 of the excessive floor area ratio and shall supply them to a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity. <Amended on Apr. 18, 2023> |
| (3) | Notwithstanding Article 49 (1), a project implementer who conducts a small-scale reconstruction project may construct buildings up to the statutory maximum floor area ratio after integrated deliberation under Article 27, notwithstanding the floor area ratios prescribed by Si/Gun ordinance pursuant to Article 78 of the National Land Planning and Utilization Act. In such cases, the project implementer (excluding a project implementer who conducts a small-scale reconstruction project pursuant to Article 18 (1) 1) shall construct national standard housing in an area equivalent to the ratio prescribed by City/Do ordinance, which is at least 20/100 but not more than 50/100 of the floor area ratio in excess of the floor area ratio prescribed by Si/Gun ordinance and shall supply such housing to the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, the head of a Si/Gu, or the Korea Land and Housing Corporation or any similar entity. <Newly Inserted on Apr. 18, 2023> |
| (4) | Notwithstanding the statutory maximum floor area ratio, a public implementer, etc. who conduct a public involvement small-scale reconstruction project or conduct such project by proxy may construct buildings up to 120/100 of the statutory maximum floor area ratio after integrated deliberation under Article 27. <Newly Inserted on Apr. 18, 2023> |
| (5) | Where a public implementer, etc. construct buildings in excess of the statutory maximum floor area ratio under paragraph (4), he or she shall construct national standard housing in an area equivalent to the ratio prescribed by City/Do ordinance which is at least 20/100 but not more than 50/100 of the excessive floor area ratio and shall supply such housing to the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity: Provided, That this shall not apply where a public involvement small-scale reconstruction project is implemented under Article 18 (1) 1. <Newly Inserted on Apr. 18, 2023> |
| (6) | Where a project implementer intends to construct buildings in excess of the floor area ratio prescribed by Si/Gun ordinance under Article 78 of the National Land Planning and Utilization Act pursuant to paragraphs (2) through (5), he or she shall, in advance, have a consultation on matters regarding buildings, such as housing, with a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar, before a construction design is finalized, and shall reflect such matters in the relevant project implementation plan. <Newly Inserted on Apr. 18, 2023> |
| (7) | The price of housing supplied under paragraph (2), (3), or (5) shall be determined based on the standard construction costs of publicly-constructed rental housing publicly notified by the Minister of Land, Infrastructure and Transport under Article 50-4 of the Special Act on Public Housing, and the land appurtenant to such rental housing shall be deemed donated to a Mayor/Do Governor, the head of a Si/Gun, or the Korea Land and Housing Corporation or any similar entity. <Amended on Apr. 18, 2023> |
| (8) | Housing, etc. acquired under paragraphs (2), (3), (5), and (7) shall be used as rental housing, etc. prescribed by Presidential Decree. In such cases, matters necessary for procedures, methods, etc. for acquiring housing, etc. shall be prescribed by Presidential Decree. <Amended on Apr. 18, 2023> |
[This Article Newly Inserted on Jul. 20, 2021]
[Title Amended on Apr. 18, 2023]
| Article 50 (Improvement Assisting Agencies) |
| (1) | To facilitate unoccupied house improvement projects and small-scale housing improvement projects, the Minister of Land, Infrastructure and Transport may designate the following institutions as improvement assisting agencies: <Amended on Feb. 3, 2022> |
| 1. | The Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act (hereinafter referred to as the "Korea Land and Housing Corporation"); |
| 2. | The Korea Research Institute for Human Settlements established pursuant to the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes; |
| 3. | Any other public institution prescribed by Presidential Decree. |
| (2) | Improvement assisting agencies may perform the following duties: <Amended on Jul. 20, 2021> |
| 1. | Support policies on unoccupied house improvement projects and small-scale housing improvement projects; |
| 2. | Provide counsel and support education on unoccupied house improvement projects and small-scale housing improvement projects; |
| 3. | Provide support in formulating project implementation plans and management and disposal plans for unoccupied house improvement projects and small-scale housing improvement projects; |
| 3-2. | Support for the formulation of management plans and the management of small-scale housing improvement projects; |
| 4. | Other duties prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (3) | The organizational structure and operation of improvement assisting agencies and other related matters shall be prescribed by Presidential Decree. |
| Article 51 (Support in Rental Management Affairs) |
| (1) | Where the project implementer of an unoccupied house improvement project or a small-scale housing improvement project ameliorates any housing owned by him or her and supplies it as rental housing that satisfies conditions prescribed by Presidential Decree, such as the compulsory rental period, initial rents and annual increase rate of rents, the Minister of Land, Infrastructure and Transport or the head of a local government may assist in the following affairs (including affairs related to leasing neighborhood living facilities referred to in Article 2 of the Building Act, which are appurtenant to the rental housing; hereinafter referred to as "rental management affairs"): |
| 1. | Recruiting and selecting persons who intend to operate rental business; |
| 2. | Constructing and purchasing rental housing; |
| 3. | Recruiting, taking occupancy, evicting and vacating, etc. of tenants; |
| 4. | Imposing and collecting rents. |
| (2) | The Minister of Land, Infrastructure and Transport or the head of a local government may entrust rental management affairs to the Korea Land and Housing Corporation. In such cases, the Korea Land and Housing Corporation entrusted with such affairs may re-entrust said affairs to a person engaged in managing the lease of residential buildings pursuant to Article 7 of the Special Act on Private Rental Housing. |
| (3) | Where it is necessary to verify tenant eligibility to perform rental management affairs, the Minister of Land, Infrastructure and Transport or the head of a local government (including the president of the Korea Land and Housing Corporation that performs rental management affairs entrusted pursuant to paragraph (2); hereafter in this Article, the same shall apply) may request the heads of relevant administrative agencies to provide data or information referred to in Article 55 of the Housing Act. In such cases, the head of the relevant administrative agencies shall comply with such request, unless there is a compelling reason not to do so. |
| (4) | To support rental management affairs efficiently, the Minister of Land, Infrastructure and Transport or the head of a local government may link said affairs to or utilize the rental housing information system built under Article 60 of the Special Act on Private Rental Housing. |
| (5) | Notwithstanding Article 49 (1) of the Special Act on Private Rental Housing, a rental business operator assisted by the Korea Land and Housing Corporation pursuant to paragraph (1) or (2) need not purchase a guarantee for rental deposit, as prescribed by Presidential Decree. |
| (6) | Where a person who supplies rental housing pursuant to paragraph (1) intends to entrust rental management affairs to a person other than the Korea Land and Housing Corporation, the Minister of Land, Infrastructure and Transport may require the person to purchase a written guarantee to protect the rights of lessors and lessees. |
| (7) | Standards, methods, and procedures for supporting rental management affairs under paragraph (1) and other related matters shall be prescribed by Presidential Decree. |
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 52 (Public Notice of Guidelines for Unoccupied House Improvement Projects) |
| (1) | To assist the head of a Si/Gun in promoting unoccupied house improvement projects efficiently and systematically, the Minister of Land, Infrastructure and Transport may determine and publicly notify guidelines for any of the following matters: |
| 1. | Formulation of unoccupied house improvement plans; |
| 2. | Methods and standards for fact-finding surveys of unoccupied houses; |
| 3. | Demolition and management of unoccupied houses; |
| 4. | Other matters prescribed by Presidential Decree. |
| (2) | To ascertain whether the guidelines for the matters prescribed in paragraph (1) are complied with, the Minister of Land, Infrastructure and Transport may request the head of a Si/Gun to provide data or information or to report thereon. In such cases, the head of the relevant Si/Gun shall comply with such request, unless there is a compelling reason not to do so. |
| (3) | Where necessary to formulate policies on the improvement and utilization of unoccupied houses, the Minister of Land, Infrastructure and Transport may request the heads of relevant central administrative agencies, the heads of local governments or the heads of public institutions to submit data or information on unoccupied houses. In such cases the heads of agencies or institutions in receipt of such request shall comply therewith unless there is a compelling reason not to do so. |
| Article 53 (Provision of Technical Support and Information) |
| (1) | To facilitate unoccupied house improvement projects and small-scale housing improvement projects, the head of a Si/Gun may provide project implementers, etc. with technical support and information regarding the following: |
| 1. | Design, construction, maintenance of housing (excluding multi-family housing subject to compulsory management defined in Article 2 (1) 2 of the Multi-Family Housing Management Act); |
| 2. | Establishment of a residents' consensus body and an association; |
| 3. | Formulation of project implementation plans and management and disposal plans; |
| 4. | Other matters prescribed by City/Do ordinance. |
| (2) | To provide the technical support and information under paragraph (1) efficiently, the head of a Si/Gun may utilize any of the following centers: |
| 1. | An urban regeneration support center established under Article 11 of the Special Act on Promotion of and Support for Urban Regeneration; |
| 2. | A housing welfare center established under Article 22 of the Framework Act on Residence; |
| 3. | A housing management support center established under Article 35-2 of the Building Act; |
| 4. | A housing support center established under Article 17 of the Act on the Support for Housing Disadvantaged Persons including Persons with Disabilities and the Aged; |
| 5. | Any other center established for purposes similar to those of the centers prescribed in subparagraphs 1 through 4 pursuant to ordinance of the relevant local government. |
| (1) | Each Mayor/Do Governor shall report the outcomes of promoting small-scale housing improvement projects quarterly to the Minister of Land, Infrastructure and Transport, and the head of a Si/Gun/autonomous Gu shall report the same to the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor. |
| (2) | Where necessary for supervising whether an improvement project is smoothly implemented, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/autonomous Gu, may order a person who performs the affairs under this Act, such as a project implementer, improvement project management contractor, demolition business operator, designer or contractor, to report matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport or to submit data thereon, and may have public officials under his or her control inspect matters related to such affairs. <Amended on Jun. 9, 2020> |
| (3) | A project implementer, other than the head of a Si/Gun, the Land and Housing Corporation, or similar entity, shall undergo an audit conducted by an auditor referred to in Article 3 of the Act on External Audit of Stock Companies. |
| (4) | Where a small-scale housing improvement project is deemed to violate this Act, an order or disposition issued under this Act, or the relevant project implementation plan, the Minister of Land, Infrastructure, a Mayor/Do Governor, the head of a Si/Gun/autonomous Gu may take such measures as revoking authorization for the project implementation plan, to the extent necessary for appropriately implementing the small-scale housing improvement project. In such cases, the Minister of Land, Infrastructure, a Mayor/Do Governor, the head of a Si/Gun/autonomous Gu may organize an inspection team comprised of relevant public officials and experts to conduct an on-site inspection of the small-scale housing improvement project and take necessary measures, such as mediating disputes and requesting the correction of violations. |
| (5) | Where documents regarding the implementation of a small-scale housing improvement project or relevant materials are prepared or changed, a project implementer (referring to an executive officer of an association including liquidator in cases of an association; and the representative of a residents' consensus body in cases of owners of land or other property; hereafter in this Article, the same shall apply) shall disclose the details thereof on the Internet and by any other means within 15 days after such preparation or change in order to inform association members, owners of land or other property, and tenants. In such cases, if an association member or an owner of land or other property requests inspecting or copying documents and relevant materials, the project implementer shall comply with such request within 15 days. <Amended on Feb. 3, 2022> |
| (6) | A project implementer or an improvement project management contractor shall prepare documents and relevant materials, and even stenographic notes or audio or video records in cases of a general meeting or an important meeting (referring to a meeting prescribed by Presidential Decree, which involves expenses borne by association members or owners of land or other property or results in changes in rights and obligations) and shall retain them until liquidation. <Amended on Feb. 3, 2022> |
| (7) | Upon completing or abandoning a small-scale housing improvement project, a project implementer, other than the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity, shall transfer relevant documents to the head of the relevant Si/Gun, as prescribed by City/Do ordinance. <Newly Inserted on Feb. 3, 2022> |
| (8) | No person shall conduct any of the following acts regarding the selection of a contractor, designer, or improvement project management contractor: <Amended on Aug. 20, 2019; Feb. 3, 2022> |
| 1. | Providing, or indicating an intention or promising to provide, money or valuables, entertainment, or other economic benefits; |
| 2. | Receiving, or accepting an indication of an intention to provide, money or valuables, entertainment, or other economic benefits; |
| 3. | Engaging in the conduct prescribed in subparagraph 1 or 2 through a third party. |
| Article 55 (Authorization and Permission Deemed Granted under Other Statutes) |
| (1) | Where a project implementer has obtained authorization for its project implementation plan pursuant to Article 12 or 29 (referring to the time a project implementation plan has been formulated, where the head of a Si/Gun directly implements an unoccupied house improvement project or a small-scale housing improvement project; hereafter in this Article, the same shall apply), the project implementer is deemed to have obtained the following authorization, permission, etc.; and where authorization for a project implementation plan is publicly notified pursuant to Article 12 (3) or 29 (5), the authorization, permission, etc. granted under the following related Acts shall be deemed publicly notified or announced: <Amended on Aug. 20, 2019; Mar. 31, 2020; Jun. 9, 2020; Nov. 30, 2021; Apr. 18, 2023> |
| 1. | Approval of a project plan under Article 15 of the Housing Act; |
| 2. | Approving a housing construction project plan under Article 35 of the Special Act on Public Housing; |
| 3. | Building permission under Article 11 of the Building Act, permission for or reporting on a temporary structure under Article 20 of that Act, consultation on constructing a building under Article 29 of that Act, and authorization of construction agreements under Article 77-6 of that Act; |
| 4. | Permission granted to a person, other than road managing authorities under Article 36 of the Road Act to execute roadworks; and permission to occupy and use a road under Article 61 of that Act; |
| 5. | Authorizing a general waterworks business under Article 17 of the Water Supply and Waterworks Installation Act; or authorizing the installation of private-use waterworks or private-use industrial waterworks under Article 52 or 54 of that Act; |
| 6. | Permission for public sewerage business under Article 16 of the Sewerage Act, and reporting on the installation of private sewerage treatment facilities under Article 34 (2) of that Act; |
| 7. | Permission to use under Article 30 of the State Property Act; |
| 8. | Permission to use and to gain benefits under Article 20 of the Public Property and Commodity Management Act; |
| 9. | Reporting on the commencement or alteration of a project under Article 86 (1) of the Act on the Establishment and Management of Spatial Data; |
| 10. | Determination of an urban/Gun management plan under Article 30 of the National Land Planning and Utilization Act (only applicable to district-unit planning zones and district-unit plans under Article 51 (1) of that Act among plans under subparagraph 4 (a), (c), and (e) of Article 2 of that Act); permission to conduct development activities under Article 56 of that Act; designation of implementers of urban or Gun planning facility projects under Article 86 of that Act; and authorization for implementation plans under Article 88 of that Act; |
| 11. | Authorization for, or reporting on, a plan for works for setting up electric installations for private use under Article 8 of the Electric Utility Act; |
| 12. | Consent to building permission, etc. under Article 6 (1) of the Act on Installation and Management of Firefighting Systems; and permission to build a factory, etc. under Article 6 (1) of the Act on the Safety Control of Hazardous Substances (factory, etc. shall be limited to those related to any factory building or facilities appurtenant thereto); |
| 13. | Permission for the establishment, etc. of private roads under Article 4 of the Private Road Act. |
| (2) | Where a project implementer has obtained authorization for a project implementation plan for a small-scale housing improvement project in a management area, the project implementer shall be deemed to have obtained the following authorization, permission, etc. other the authorization, permission, etc. provided in paragraph (1), and where public notice of authorization for a project implementation plan is given under Article 29 (5), public notice, public announcement, etc. of authorization, permission, etc. shall be deemed given or made under the following related Acts: <Newly Inserted on Jul. 20, 2021> |
| 1. | Formulating and amending an improvement plan under Article 9 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 2. | Formulating and amending an urban regeneration revitalization plan under Article 20 of the Special Act on Promotion of and Support for Urban Regeneration. |
| (3) | Where a project implementer has obtained authorization for a project implementation plan for a small-scale redevelopment project with regard to a zone in which a factory is located, the project implementer shall be deemed to have obtained the following authorization, permission, etc. other than the authorization, permission, etc. prescribed in paragraph (1), and where public notice of authorization for a project implementation plan is given under Article 29 (5), public notice, public announcements, etc. of authorization, permission, etc. shall be deemed given or made under the following relevant statutes: |
| 1. | Approving factory establishment, etc. under Article 13 of the Industrial Cluster Development and Factory Establishment Act or filing a report on the completion of factory establishment, etc. under Article 15 of that Act; |
| 2. | Approving or filing a report on the installation of a waste treatment facility under Article 29 (2) of the Wastes Control Act (including approving or filing a report on changes); |
| 3. | Permitting and filing a report on the installation of an emission facility under Article 23 of the Clean Air Conservation Act, Article 33 of the Water Environment Conservation Act or Article 8 of the Noise and Vibration Control Act. |
| (4) | Where a project implementer intends to be deemed granted authorization, permission, etc. under paragraphs (1) through (3), the project implementer shall submit related documents prescribed by the relevant Act when filing an application for authorization for its project implementation plan: Provided, That the project implementer may submit the related documents by the deadline set by the head of the relevant Si/Gun, if it impossible to submit such documents when filing an application because the contractor has not been selected, or if its project implementation plan is authorized pursuant to paragraph (6). <Amended on Jun. 9, 2020; Jul. 20, 2021> |
| (5) | Where any of the authorization, permission, etc. deemed granted under the subparagraphs of paragraphs (1) through (3) relates to a project implementation plan that the head of a Si/Gun intends to authorize or formulate, he or she shall have a prior consultation with the heads of related administrative agencies, and the head of each related administrative agency in receipt of a request for consultation shall submit his or her opinion within 20 days from the date of receipt of such request (referring to the date on which the documents are delivered to the heads of the related administrative agencies, in cases falling under the proviso of paragraph (4)). If no reply is submitted by the head of a related administrative agency within 20 days, consultation shall be deemed held. <Amended on Jul. 20, 2021> |
| (6) | Where the head of a Si/Gun deems it necessary to implement a project urgently due to a natural disaster or other inevitable reasons, he or she may authorize a project implementation plan before completing consultation with the heads of related administrative agencies, notwithstanding paragraph (5). In such cases, no authorization, permission, etc. shall be deemed granted under paragraphs (1) through (3) until such consultation is completed. <Amended on Jul. 20, 2021> |
| (7) | Where any authorization, permission, etc. is granted pursuant to paragraphs (1) through (3) regarding a project under any other Act, a project implementer is exempt from fees imposed for granting the relevant authorization, permission, etc., and fees for using or occupying the relevant State or publicly-owned land under the relevant Acts or City/Do ordinance. <Amended on Jul. 20, 2021> |
| Article 56 (Application Mutatis Mutandis of the Act on the Improvement of Urban Areas and Residential Environments) |
| (1) | Articles 27, 36 and 37 of the Act on the Improvement of Urban Areas and Residential Environments shall apply mutatis mutandis to the methods, etc. for obtaining consent from owners of land or other property; Article 28 of that Act to the designation of developers of housing improvement projects in city blocks, small-scale reconstruction projects or small-scale redevelopment projects; Articles 38 and 40 through 46 of that Act to the legal personality, articles of association, and executive officers of associations; Articles 47 and 48 of that Act to resident representatives' committees and general meetings of owners of land or other property; Article 51 of that Act to the standards, etc. for donation of fundamental infrastructure; Article 54 of that Act to the upper limits, etc. of floor area ratios; Articles 56 and 58 of that Act to the authorization, formulation, etc. of project implementation plans by the head of a Si/Gun; Article 82 of that Act to performance guarantee; Articles 83 and 85 of that Act to the procedures, methods, etc. of approval of completion, completion of construction works, etc.; Article 87 of that Act to the confirmation of rights, etc. to sites and buildings where ownership is transferred; Article 90 of that Act to the methods etc. for collecting settlement money; Article 93 of that Act to the imposition, collection, etc. of charges and late payment fees; Articles 94 and 97 of that Act to the bearing of costs by the manager of fundamental infrastructure, vesting of such infrastructure, etc.; Articles 102 through 110 of that Act to improvement project management contractors; Articles 111 through 113, 124 and 125 of that Act to the supervision, etc. of small-scale housing improvement projects; and Articles 115 and 120 through 122 to education of executive officers of associations, obligations of owners of land or other property to explain, etc. In such cases, "a redevelopment project" shall be construed as "an autonomous housing improvement project, a housing improvement project in a city block or a small-scale redevelopment project" and "rebuilding project" as "small-scale reconstruction project", respectively. <Amended on Apr. 23, 2019; Aug. 20, 2019; Jul. 20, 2021; Feb. 3, 2022> |
| (2) | The Act on the Improvement of Urban Areas and Residential Environments shall apply mutatis mutandis to the following cases, but matters to be specially stipulated in consideration of the scale, features, etc. of a small-scale housing improvement project may be separately prescribed by Presidential Decree: <Amended on Jul. 20, 2021> |
| 1. | Article 74 of that Act shall apply mutatis mutandis to the assessment, etc. of property and rights. In such cases, "reconstruction project" shall be construed as "small-scale housing improvement project" and "general meeting of an association" as "general meeting of an association, meeting of a residents' consensus body, resident representatives' committee or general meeting of the owners of land or other property", respectively; |
| 2. | Article 98 of that Act shall apply mutatis mutandis to disposal, etc. of State or public property. In such cases, "project implementation plan ... intends to authorize or directly formulates under Article 50 or 52" shall be construed as "project implementation plan ... intends to authorize or directly formulates under Article 29 or 30" and "improvement zone" as "project zone", respectively. |
| (3) | Article 80 of the Act on the Improvement of Urban Areas and Residential Environments shall apply mutatis mutandis to the supply of undivided co-owned houses, etc. for a small-scale housing improvement project. <Newly Inserted on Oct. 19, 2021> |
| Article 57 (Succession to Rights and Duties of Project Implementers) |
When a project implementer or a holder of any title regarding a small-scale housing improvement project (hereinafter referred to as "title holder") is changed, the rights and duties of the former project implementer or title holder shall be succeeded by the new project implementer or title holder.
| Article 58 (Persons Deemed to Be Public Officials for Purposes of Applying Penalty Provisions) |
The representative of a residents' consensus body, executive officers of an association, liquidators, management specialists, and the representative (referring to the executive officers in cases of corporations), employees of improvement project management contractors shall be deemed public officials for the purposes of applying Articles 129 through 132 of the Criminal Act. <Amended on Aug. 20, 2019>
CHAPTER VI? PENALTY PROVISIONS
| Article 59 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended on Feb. 3, 2022>
| 1. | A person who forges a written consent obtained from an owner of land or other property under Article 25 (1); |
| 2. | A person who provides, indicates an intention or promises to provide, receives, or accepts an indication of an intention to provide, money, valuables or other economic benefits, in violation of any subparagraph of Article 54 (8). |
| Article 60 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on Aug. 20, 2019; Apr. 18, 2023>
| 1. | A person who uses, provides, or divulges data or information, in violation of Article 8 (4); |
| 2. | A person who selects, or is selected as, a contractor, in violation of Article 20; |
| 2-2. | An executive officer (including an association management specialist) who selects an improvement project management contractor, in violation of contracting methods as provided for in Article 21 (3); |
| 3. | A person who becomes a member of an association or the head of a plot of land or structure or an executive officer or employee of an association (including the special administrator of an association), who aids and abets a person to become a member of an association, by fraud or other improper means, in violation of Article 24 (2); |
| 4. | A person who conceals the transfer or acquisition of a structure or a plot of land with intent to transfer or be supplied with a housing unit sold under Article 28 by circumventing Article 24 (2); |
| 5. | A person who sells or purchases a written consent obtained from any owner of land or other property under Article 25 (1); |
| 6. | A person who re-sells or arranges the resale of a house, in violation of the proviso of Article 33 (3) 7 (c). |
| Article 61 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Amended on Jul. 20, 2021; Feb. 3, 2022; Apr. 18, 2023>
| 1. | A person who is entrusted with an improvement project without filing for registration, in violation of Article 21 (1); |
| 1-2. | An executive officer of an association who arbitrarily promotes a project without a resolution passed at a general meeting under Article 23 (8); |
| 2. | A person who fails to obtain permission or permission for amendment or conducts an act with permission or permission for amendment obtained by fraud or other improper means, in violation of Article 23-3 (1); |
| 3. | A person who establishes and operates a resident representatives' committee without the approval of a resident representatives' committee pursuant to Article 25 (2); |
| 4. | A person who promotes a project by arbitrarily establishing a resident representatives' committee, although a resident representatives' committee has been established with approval under Article 25 (2); |
| 5. | A person who implements a project without obtaining authorization for a project implementation plan pursuant to Article 29; and a person who constructs a building in violation of the project implementation plan; |
| 6. | A person who transfers ownership under Article 40 without obtaining authorization for a project implementation plan pursuant to Article 29; |
| 7. | A project implementer, a resident representatives' committee or an improvement project management contractor that has disregarded an order issued pursuant to Article 54 (4) regarding the revocation, change or suspension of a disposition or the suspension or change of the relevant construction works; |
| 8. | An executive officer of an association (referring to the representative of owners of land or other property, if a project is implemented by such owners of land or other property) who discloses any false document or relevant materials referred to in Article 54 (5); |
| 9. | An executive officer of an association (referring to the representative of owners of land or other property, if a project is implemented by such owners of land or other property) who allows the inspection of, or delivers a copy of, any document or relevant materials referred to in the latter part of Article 54 (5) which contain a false representation upon receipt of a request for inspection or copying. |
| Article 62 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for up to one year or by a fine not exceeding 10 million won: <Amended on Apr. 18, 2023>
| 1. | A management entity specialized in improvement projects that has another service provider or its employee engage in any activity provided in the subparagraphs of Article 21 (1); |
| 1-2. | A person who uses a building, etc. without obtaining approval of completion required under Article 39 (1); and a person who uses a building without obtaining permission for use from the head of a Si/Gun pursuant to paragraph (5) of that Article; |
| 2. | A person who fails to undergo an audit under Article 54 (3); |
| 3. | An executive officer of an association (referring to the representative of the liquidator of an association or owners of land or other property, if a project is implemented by the liquidator of an association or owners of land or other property, or the representative of a qualified developer if the qualified developer designated under Article 19 is the project implementer) who fails to disclose the documents and materials related to the implementation of the relevant project via the Internet and by other means; or who fails to comply with a request of an association member or an owner of land or other property for the inspection or copying of such documents and materials, in violation of Article 54 (5); |
| 4. | An executive officer of an association (referring to the representative of the liquidator of an association or owners of land or other property, if a project is implemented by the liquidator of an association or owners of land or other property, or the representative of a qualified developer, if the qualified developer designated under Article 19 is the project implementer) who fails to prepare stenographic records, etc. or to keep related materials until the time of liquidation, in violation of Article 54 (6). |
| Article 63 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation prescribed in Articles 59, 60, 61, and 62 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be subject to a fine prescribed in the relevant provision: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation.
| Article 64 (Administrative Fines) |
| (1) | Each person who refuses, evades, or interferes with an on-site inspection conducted by an inspection team pursuant to Article 54 (4) shall be subject to an administrative fine of 10 million won. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Jun. 9, 2020; Feb. 3, 2022> |
| 1. | A person who neglects to give notice required under Article 40 (1); |
| 2. | A person who neglects to report or submit data pursuant to Article 54 (2); |
| 3. | A person who neglects to transfer relevant documents under Article 54 (7). |
| (3) | Administrative fines prescribed in paragraphs (1) and (2) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si/Gun/autonomous Gu, as prescribed by Presidential Decree. |
| Article 65 (Charges for Compelling Compliance) |
| (1) | Where an owner ordered to take measures under Article 11 (1) fails to comply with such order within the prescribed period, the head of a Si/Gun shall impose on the owner a charge for compelling compliance in an amount which is calculated by multiplying the percentage prescribed by Presidential Decree in accordance with the details of the order and is not more than the amount obtained by multiplying an amount equivalent to 50/100 of the assessed value per one square meter applicable to the relevant structure under the Local Tax Act by the total floor area. |
| (2) | Before imposing a charge for compelling compliance under paragraph (1), the head of a Si/Gun shall give a prior written warning to the effect that such charge is imposed and collected when an order to take measures is not complied with within a reasonable period. |
| (3) | Where the head of a Si/Gun imposes a charge for compelling compliance under paragraph (1), he or she shall do so in writing, stating the amount of such charge, the reasons for imposition, the payment deadline, the collecting agencies, the methods of filing objections, etc. |
| (4) | The head of a Si/Gun may repeatedly impose and collect a charge for compelling compliance under paragraph (1) on up to two occasions a year starting from the date the first order to take measures is issued, until such order is complied with. |
| (5) | Where a person ordered to take measures under Article 11 (1) complies with such order, the head of a Si/Gun shall suspend the imposition of a new charge for compelling compliance but shall collect the charge already imposed. |
| (6) | Where a person subject to the imposition of a charge for compelling compliance under paragraph (3) fails to pay such charge by the payment deadline, the charge shall be collected under the Act on Collection of Local Administrative Penalty Charges. |
[This Article Newly Inserted on Apr. 13, 2021]
ADDENDA <Act No. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Request for Sale)
| (1) | Article 35 shall begin to apply from the first application filed to obtain authorization to establish an association after this Act enters into force. |
| (2) | Notwithstanding paragraph (1), the project implementer of a housing improvement project in a city block may request sale pursuant to Article 35, although it has filed an application for authorization to establish an association before this Act enters into force, and in such cases, "date of receipt of outcomes of deliberation" in Article 35 (1) shall be deemed "date on which this Act enters into force". |
Article 3 (General Transitional Measures)
Any disposition issued, procedure taken, and act done under the provisions related to housing improvement projects in a city block and housing reconstruction projects (referring to housing reconstruction projects implemented in zones other than improvement zones; hereinafter the same shall apply) of the previous Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as the "previous Act"), as at the time this Act enters into force, shall be deemed issued, taken, and done under the relevant provisions of this Act.
Article 4 (Transitional Measures concerning Housing Improvement Projects in City Blocks, etc.)
Any housing improvement project in a city block and housing reconstruction project being implemented pursuant to the previous Act shall be respectively deemed a housing improvement project in a city block and a small-scale reconstruction project implemented under this Act.
Article 5 (Transitional Measures concerning Committees of Promoters to Establish Associations)
Notwithstanding Article 21, a committee of promoters to establish an association, which was approved to implement a housing reconstruction project under the previous Act before this Act enters into force, may perform the business affairs prescribed in Article 32 of the Act on the Improvement of Urban Areas and Residential Environments, such as selecting or replacing an improvement project management contractor, to implement a small-scale reconstruction project under this Act.
Article 6 (Transitional Measures concerning Formulation of Management and Disposal Plans)
Timing, procedures, etc. for formulating a management and disposal plan for a housing improvement project in a city block or a housing reconstruction project, for which an application has been filed to obtain authorization for a project implementation or authorization for a project implementation plan under the previous Act as at the time this Act enters into force, shall be governed by the previous Act.
Article 7 (Transitional Measures concerning Penalty Provisions, etc.)
Application of penalty provisions and administrative fines for any violations committed regarding any housing improvement project in a city block and housing reconstruction project before this Act enters into force shall be governed by the previous Act.
Article 8 Omitted.
Article 9 (Relationship to Other Statutes)
A citation of the previous Act or any provision thereof in another statute, as at the time this Act enters into force, shall be deemed a citation of this Act or the provision thereof, if such corresponding provision exists herein.
ADDENDA <Act No. 14719, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 3 of the Addenda shall enter into force on February 9, 2018.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 15356, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDA <Act No. 15456, Mar. 13, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 (Applicability to Inclusion of Land Located Outside Housing Complex)
The amended provisions of the proviso to Article 16 (3) shall begin to apply when an application is filed for the first time to obtain authorization for a project implementation plan after this Act enters into force.
ADDENDA <Act No. 15489, Mar. 20, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 16387, Apr. 23, 2019>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Special Cases concerning Relaxation of Standards for Construction of Unoccupied House Improvement Projects in Unoccupied House Areas)
The amended provisions of Article 46 shall begin to apply to applications filed to obtain authorization for a project implementation plan after this Act enters into force.
Article 3 (Applicability to Special Cases concerning Relaxing Building Regulation)
The amended provisions of Article 48 (1) and (2) shall begin to apply to applications filed to obtain authorization for a project implementation plan filed after this Act enters into force.
Article 4 (Applicability to Special Cases concerning Construction of Rental Housing)
The amended provisions of Article 49 shall begin to apply to applications filed for authorization for a project implementation plan after this Act enters into force.
ADDENDA <Act No. 16415, Apr. 30, 2019>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.) |
Articles 2 through 3 Omitted.
ADDENDA <Act No. 16496, Aug. 20, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Authorization and Permission Deemed Granted under Other Statutes)
The amended provisions of Article 55 (1) shall begin to apply to applications filed to obtain authorization, etc. for construction agreements after this Act enters into force.
ADDENDA <Act No. 17171, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Article shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Act No. 17484, Aug. 18, 2020>
This Article shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 17689, Jun. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 17893, Jan. 12, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 23 Omitted.
ADDENDA <Act No. 18049, Apr. 13, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 4 (1) and 5 (1) shall enter into force on January 1, 2022.
Article 2 (Applicability to Imposition of Charges for Compelling Compliance)
The amended provisions of Article 65 shall begin to apply where an order to take measures is issued under Article 11 (1) on or after the date this Act enters into force.
Article 3 Omitted.
ADDENDA <Act No. 18314, Jul. 20, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation: Provided, That the amended provisions of Article 44 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement (Act No. 18049) shall enter into force on October 14, 2021.
Article 2 (Applicability to Qualifications for Owners of Land and Other Property)
The amended provisions of Article 22 (9) shall begin to apply where a report on the organization of a residents' consensus body is filed on or after the date this Act enters into force.
Article 3 (Special Cases concerning Applications to Purchase Building Sites or Units Filed by Owners of Land or Other Property)
| (1) | Where a small-scale redevelopment project or a housing improvement project in a city block is implemented (limited to where such project is implemented in a management area by the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity designated as a public implementer under Article 18 (1); hereafter in this Article, the same shall apply), a person who becomes the owner of land or other property after registering such land or other property to acquire its ownership from the date following date the National Assembly passes a resolution on this Act shall not file an application to purchase building sites or units under Article 28 (3): Provided, That this shall not apply where the ownership of land or other property is changed due to inheritance or divorce. |
| (2) | Notwithstanding paragraph (1), where a small-scale redevelopment project implemented, a person who concludes a contract for purchasing a housing unit on or before the date public notice is given under the amended provisions of Article 17-2 (6) and to whom the ownership of multi-family housing is transferred before a project implementer is designated under Article 18 or 19, a report on the organization of a residents’ consensus body is filed under Article 22 or an application for authorization to establish an association under Article 23 may file an application for purchasing building sites or units under Article 28 (3) with respect to housing for which building permission was granted (including where building permission was deemed granted under Article 19 of the Housing Act as a housing project plan was approved) to construct multi-family housing prescribed in Article 2 (2) 2 of the Building Act by February 4, 2021. |
| (3) | Notwithstanding paragraph (1), where a housing improvement project in a city block is implemented, a person who concludes a contract for purchasing a housing unit on or before the date public notice of a management plan is given under the amended provisions of Article 43-2 (3) and to whom the ownership of multi-family housing is transferred before a project implementer is determined and publicly notified under Article 18 (2) may file an application for purchasing building sites or units under Article 28 (3) with respect to housing for which building permission was granted (including where building permission was deemed granted under Article 19 of the Housing Act as a housing project plan was approved) to construct multi-family housing prescribed in Article 2 (2) 2 of the Building Act by February 4, 2021. |
Article 4 (Special Cases concerning Determination of Rights to Purchase Building Units)
The date for determining rights to purchase building units under the amended provisions of Articles 28-2 (1) and 43-4 (4) (limited to a housing improvement project in a city block implemented in a management area by the head of a Si/Gun or the Korea Land and Housing Corporation or any similar entity designated as a public implementer under Article 18 (1)) shall be based on the date the National Assembly passes a resolution on this Act.
Article 5 Omitted.
ADDENDUM <Act No. 18510, Oct. 19, 2021>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 18522, Nov. 30, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 18831, Feb. 3, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Authorization to Establish Associations)
The amended provisions of Article 23 shall begin to apply to an application filed for authorization to establish an association after the date this Act enters into force.
Article 3 (Applicability to Restrictions on Activities)
The amended provisions of Article 23-3 shall begin to apply where public notice of the designation of a public implementer or a qualified developer, public notice of the organization of a residents' consensus body, or public notice of the authorization to establish an association is provided after the date this Act enters into force.
Article 4 (Applicability to Qualifications for Association Members)
The amended provisions of Article 24 (2) shall begin to apply where an application for authorization to establish an association is filed after the date this Act enters into force.
Article 5 (Applicability to Assessment of Settlement Money)
The amended provisions of Article 41 shall begin to apply to an application filed for authorization for a project implementation plan after the date this Act enters into force.
Article 6 (Amendments to Other Statutes)
ADDENDA <Act No. 19225, Feb. 14, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 19385, Apr. 18, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 17-2, 18, 19, 22 (10), 23 (9), 25, 28-2, 43-2 (4), 43-4 (4), and 49-2 (1) and Articles 3 and 4 of the Addenda to the Act on Special Cases concerning Unoccupied Houses and Small-Scale Housing Improvement (Act No. 18314) shall enter into force on the date of the promulgation.
Article 2 (Applicability to Public Notice of Transfer and Restrictions on Change in Rights)
The amended provisions of Article 40 (5) shall begin to apply where an authorization for a project implementation plan is obtained pursuant to Article 29 after the date this Act enters into force.
Article 3 Omitted.